YEAR BOOK

2011

Contents
International & Regional Leasing Vision & Mission Statement Associations Secretariat Executive Committee Member Messages l Dr. Abdul Hafeez Shaikh l Mr. Muhammad Ali l Mr. Jawed Hussain 6. Chairmans Review 7. Articles l Shari'ah Governance Model (SGM) And Its Four Basic Pillars l Shariah Compliance & Shariah Audit Mechanisms l Accounting and Auditinig Organization For Islamic Financial Institutions (AAOIFI) l ORIX "ISLAMIC WINDOW" l Role of NBFIs in SME Sector Development 11. Events & Articles l First Annual General Meeting of the Association l Best Performance Awards Ceremony l Renovation of Office Premises l Meetings with Chairman, SECP l Meeting with Registrar Modaraba l Launching of Year Book - 2010 l Workshop on "Asset and Liability Side Products l Workshop on Sales Tax l Two Days Seminar for Senior Management l Four Days Workshop on "Shariah Compliance & Shariah Audit Mechanism" at Lahore l Intensive Workshop on "Shariah Compliance & Shariah Audit Mechnism" Organised at the Auditorium of the Association at Karachi l First Habib Modaraba Best Corporate Report Award from ICAP / ICMAP Brand of the Year Award SAFA "Certificate of Merit Award" Credit Ratings 1. 2. 3. 4. 5. 04 05 06 09 12 13 14 16 12. Macro Perspective 13. Members at a Glance 14. Performance Highlights Top Ten Performers - 2011 15. Company Profiles l Allied Rental Modaraba l B.F. Modaraba l B.R.R. Guardian Modaraba l Capital Asset Leasing Corporation Ltd. l Crescent Standard Modaraba l First Al-Noor Modaraba l First Constellation Modaraba l First Dawood Investment Bank Ltd. l First Elite Capital Modaraba l First Equity Modaraba l First Fidelity Leasing Modaraba l First Habib Bank Modaraba l First Habib Modaraba l First IBL Modaraba l First Imrooz Modaraba l First National Bank Modaraba l First Pak Modaraba l First Paramount Modaraba l First Prudential Modaraba l First Punjab Modaraba l First Treet Manufacturing Modaraba l First Tri-Star Modaraba l First UDL Modaraba l Grays Leasing Ltd. l Invest Capital Investment Bank Ltd. l KASB Modaraba l Modaraba Al-Mali l NBP Leasing Ltd. l ORIX Leasing Pakistan Ltd. l Pak-Gulf Leasing Company Ltd. l Saudi Pak Leasing Company Ltd. l Security Leasing Corporation Ltd. l Sigma Leasing Corporation Ltd. l SME Leasing Ltd. l Standard Chartered Leasing Ltd. l Standard Chartered Modaraba l Trust Investment Bank Ltd. l Trust Modaraba l Unicap Modaraba 15. Members Directory 16. Advertisements 68 77 81 84 86 88 90 92 94 96 98 100 102 104 106 108 110 112 114 116 118 120 122 124 126 128 130 132 134 136 138 140 142 144 146 148 150 152 154 156 158 160 164 171

24 28 34 37 39

46 47 51 52 53 55 57 58 59

61

63

65 65 66 66

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International & Regional Leasing Associations

AFRICAN LEASING ASSOCIATION (AFROLEASE) C/o Leasafric Ghana Limited, 6 Airport, West Dzorwulu. P.O. Box CT 2430, Cantonments, Accra Ghana. Tel: 233 21 780901-2, Fax: 233-21-776373 E-mail: afrolease@yahoo.com, info@afrolease.net Website: www.afrolease.net ASIAN FINANCIAL SERVICES ASSOCIATION (AFSA) Plaza Sentral Building, 14th Floor, Jl. Jend. Sudirman No. 47, Jakarta 12930, Indonesia. Tel: (62-21) 5288 0113 / 5288 0124, Fax: (62-21) 5288 0114 E-mail: secretariat@afsaworld.org Website: www.afsaworld.org FEDERACION LATINOAMERICANA DE LEASING FELALEASE Rua Diogo Moreira, 132 8 andar, conj. 806. CEP 05423-010 So Paulo Brasil. Tel: 55-11 3095-9100, Fax: 55-11 3095-9105 E-mail: felalease@felalease.org Website: www.felalease.com

INSTITUTE OF INTERNATIONAL CONTAINER LESSORS (IICL) 1990 M St NW Suite 650 Washington, DC 20036-3417 USA Tel: (1) 202 223-9800 Fax: (1) 202 223-9810 E-mail: info@iicl.org Website: www.iicl.org

NBFI & MODARABA ASSOCIATION OF PAKISTAN 602, Progressive Centre, 30-A, Block-6, PECHS, Shahrah-e-Faisal, Karachi-75400, Pakistan. Tel: 92-21-34389774, 34322440 Fax: 92-21-34389775 E-mail: association@nbfi-modaraba.com.pk Website: www.nbfi-modaraba.com.pk

EUROPEAN FEDERATION OF LEASING AND AUTOMOTIVE RENTAL ASSOCIATIONS Boulevard Louis Schmidt 87 B - 1040 Brussels Belgium Tel: +32 2 778 05 60 Fax: +32 2 778 05 78 E-mail: i.vermeersch@leaseurope.org Website: www.leaseurope.org

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Year Book 2011

NBFI & Modaaba Association of Pakistan

VISION
To conceive & generate sustainable business opportunities for the uplift of the NBF Sector through unified efforts and to come up with introduction of new products, and various other profitable avenues for the stake and shareholders of the members of the Association.

MISSION STATEMENT
l

To be the source of providing an intellectual platform to members, so as to address & redress business issues & concerns through collective efforts. To assist and guide members through joint forums for achieving consistent growth for the NBFC Sector. To be able to create an atmosphere of trust and confidence amongst the regulators and members. To get facilitated and manage to resolve regulatory and compliance issues with the regulators as and when faced by the members generally. To receive, assess and make implementation, recommendation of the research on remodeled business avenues and opportunities from members and consultants. To liaise with the regulators on seeking amendments to unnecessary restrictive business modules of the Leasing, Modarabas and Investment Finance Services. To hold special brain storming meetings to conceive new products for the uplift of the sector.

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Associations Secretariat
Secretariat
Mr. Muhammad Samiullah Secretary General

Registered Office
602, Progressive Centre, 30-A, Block-6, P.E.C.H.S., Shahrah-e-Faisal, Karachi-75400, Pakistan. Phone: (92-21) 34389774, 34322440 Fax: (92-21) 34389775 E-mail: association@nbfi-modaraba.com.pk Website: www.nbfi-modaraba.com.pk

Auditors
Baker Tilly Mehmood Idrees Qamar & Co. Chartered Accountants

Tax Advisor
Shekha & Mufti Chartered Accounts

Legal Advisor
Mohsin Tayebaly & Co. Advocates & Legal Consultants

Shariah Adivsor
Mufti Abdul Sattar Laghari

Bankers
BankIslami Pakistan Limited

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Year Book 2011

Executive Committee Members

Executive Committee 2011-2012

Mr. Basheer A. Chowdry Chairman

Mr. Murtaza Ahmed Ali Vice Chairman

Mr. Farrukh S. Ansari Member

Mr. Arjumand Ahmed Minai Member

Mr. Muhammad Adil Ghaffar Member

Mr. Khaqan Hasnain Ibrahim Member

Mr. Abdus Samad Khan Member

Mr. Zulfiqar Ali Member

Mrs. Arjumand A. Qazi Member

Mr. Abdul Ghaffar Umer Member

Mr. Amjad Iqbal Member

Mr. Muhammad Samiullah Secretary General

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Messages

I am pleased to note that the NBFI & Modaraba Association of Pakistan are bringing out their second Year Book for the year 2011. Such a publication will help review and assess the performance of the sector on a regular basis which is essential for public awareness, comparative analysis and policy formation. The contribution of the NBFI & Modaraba Sectors in supplementing the banking sector in credit delivery and popularizing Islamic modes of financing in the country is indeed commendable. Moreover, NBFIs and Modarabas are playing an important role in the development of Small & Medium Enterprises. The Government recognizes the importance of investment banks, leasing companies and modarabas as effective financial intermediaries which work alongside other traditional institutions, mobilize investments and expand credit regime. Pakistan is still at a developmental stage where sustainable acceleration in the growth rate is of paramount importance. The primary focus is towards development of a self-reliant economy, restoration of investors' confidence and continuity of economic and fiscal policies. Concrete measures in these areas will stimulate investment activities and will ultimately give boost to industrial and economic activities. The government is fully aware of the problems being faced by the NBFI and Modaraba sectors and assures its members that full support and cooperation will be extended to them. I hope that the NBFI & Modaraba Association of Pakistan will continue playing its due role in the evolution of a vibrant and progressive financial sector of the country.

Minister for Finance, Revenue, Economic Affairs, Statistics, Planning & Development, Government of Pakistan

Dr. Abdul Hafeez Shaikh

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Year Book 2010

The Yearbook of the NBFI & Modaraba Association provides critical information on the Leasing and Modaraba sectors in Pakistan, which, over the years, have become an integral part of our financial market. The contribution of these sectors, especially towards the development of small and medium sized enterprises in the country, is commendable. Various sectors within the NBFI and Modaraba ambit face a number of challenges, not only in terms of financial assets, but also with regard to participation and outreach to the general public. Further, although Islamic products, such as Modarabas exist in the non-banking financial markets, the growth in this area has not been up to the mark due to lack of consistency in policies for the Islamic Finance Sector. Therefore, taking a holistic approach the SECP is working on setting up a specialized unit consisting of financial and Shariah experts to review the existing and proposed Islamic products. . To this end, the NBFI & Modaraba Association has played a constructive role in bringing market participants and regulators closer, resulting in the development of mutual strategies for the consolidation and growth of Leasing and Modaraba companies. In particular, the role of the Association in the NBFC Reform Committee constituted by the SECP is appreciable. This Committee, comprising of representatives from the SECP and the non-banking finance sector is mandated to examine the current issues being faced by the NBFC sector and furnish recommendations for the promotion and growth of sustainable markets for the sector. I also appreciate the significant support of the Association extended towards the development of the "Shariah Compliance and Shariah Audit Mechanism" (SCASM), which has recently been notified for Modarabas. This is an important milestone as the implementation of the SCASM will enhance stakeholders' confidence in the Islamic financial system in Pakistan; especially with respect to Modarabas. The introduction of the SCASM will also help Modarabas obtain financing facilities from Islamic banks and Islamic mutual funds thereby addressing the issue of their resource mobilization. I am confident that the efforts and commitment of the Association and its members will enhance the resilience, strength, innovation, vision and professionalism of the NBFI and Modaraba sector, which, in turn, will further strengthen the role played by this sector in the growth of our national economy. I wish success to the NBFI & Modaraba Association of Pakistan in its endeavors.

Mr. Muhammad Ali

Chairman, SECP

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I am highly delighted to know that the NBFI & Modaraba Association of Pakistan (the Association) is in the process of publishing its Year Book 2011. I expect that the same will serve as an informative document on the overall performance of the Modaraba Sector. One of the primary objectives of SECP is to promote the Islamic financial institutions in the country. The Modaraba Sector being the pioneer in providing Islamic financial services in Pakistan is the most important to be focused on. It has been noticed that the immense potential of the modaraba concept has not been fully utilized primarily due to lack of awareness on the part of investors and lack of enthusiasm by most of the market operators. There is a need to design new innovative Islamic business products to capture the market for a consistent growth of the Modaraba sector. The SECP assures its full help and cooperation that may be required in this regard. The need for Shari'ah compliance is of paramount importance to give credibility and respectability to the Modaraba sector as an active component of the Islamic financial regime. In order to ensure that inflows and outflows of resources of Modarabas are free from Riba, Qimar, Gharar and support from business prohibited by Shari'ah (e.g. Drugs and Alcohol, Tobacco, Pork Related Items, etc.), Shari'ah Compliance and Shari'ah Audit Mechanism has been introduced which will further strengthen regulatory and supervisory oversight of the Modaraba sector and ensure that the systems, procedures and policies adopted by the Modarabas are in line with the Shari'ah principles. To make the existing Modaraba regulatory framework more comprehensive, practicable and to remove the difficulties being faced by the Modaraba Sector, the Modaraba Ordinance, the Modaraba Rules and the Prudential Regulations for Modarabas are being reviewed. I would appreciate necessary assistance and input from the Association in finalizing the process of amendment. I foresee a bright and prosperous future of the modaraba sector but still there is a long way to go. In my opinion, the Association should reassess its role and develop a future roadmap and direction to help in improving the quality of services that is provided to the consumer and monitor the activities of its members in upholding highest standards of professional and ethical values. The Association should also involve itself in regular and systematic research, analysis and discourse on issues of collective concern. I would encourage the Association to develop a mechanism for weeding out the elements that often lead to a poor general impression of the sector as a whole. Since a Modaraba has been established in the name of Islam; it is the religious obligation of all of us to make this institution successful. I hope that the Association would continue performing its due role and provide necessary assistance to the Securities and Exchange Commission of Pakistan (SECP) for the growth and development of the Modaraba Sector. I wish the Association every success in their endeavors.

Mr. Jawed Hussain

Registrar Modaraba, SECP

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Year Book 2010

Chairman Review

Chairman Review

Mr. Basheer A. Chowdry

Chairman
I feel pleasure in presenting the Second Year Book of NBFI & Modaraba Association of Pakistan. The objectives of publishing this book is to keep our constituents informed about the contribution of the NBFI & Modarabas Sector towards national economy and also provide an overview of the members' individual performance to serve as a useful tool for research and information. The Association, as a forum of Leasing Companies, Modarabas and Investment Banks, provides a platform to interact with each other in order to deal with the Sector's issues and formulate strategies for its consolation and growth in the context of market challenges and opportunities. It also maintains an active coordination with the regulatory authorities to achieve a consultative and supportive regulatory environment. The Association undertakes research, participates in national and international conferences and provides training to the human resource of member companies in different disciplines. Non Banking Financial Institutions and Modarabas are currently facing a multitude of operational problems requiring immediate and long term remedies. Therefore, the Association is actively engaged with the SECP in a comprehensive remodeling of the Sector with a view to make it a vibrant and progressive component of the financial industry. ECONOMY OF PAKISTAN The economy of Pakistan witnessed a growth of 2.4% during the fiscal year 2010-11 as compared to a growth of 4.2% during the last year. The slowdown in the economy was due to massive floods in the country which affected about 20% of the cultivable land in the country, displaced two million people and caused enormous losses of life and property. Severe energy shortage, increasing inflation and divergence of banking liquidity towards government borrowings has impacted the industry and trading yields and pushed NPLs of financial sector to record figures.

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Pakistan's fiscal position remained under stress during the year 2010-11 with a budget deficit of 6.6% of GDP, compared to a target of 4%. The implementation of reformed general sales tax, broadening of income tax net to include agriculture and services, phasing out of subsidies in a timely manner and restructuring of loss-making public enterprises were either delayed or not implemented. However, the government was able to contain its spending compared to the Financial Year 2010. Budgetary expenditure in the financial year 2011 was 18.9% of GDP against 20.5% in the preceding year. However, the trend could not be sustained in the subsequent period. PERFORMANCE OF NBFIs AND MODARABAS Despite the challenging business environment, uncertain political situation and the financial stress caused by the factors narrated above, NBFI and Modaraba Sector has shown better results during the year under review. Total assets of NBFI & Modaraba Sector stood at Rs.67,156 million and the total equity at Rs.18,342 million. The profit declared during the year under review was Rs.1,399 million as compared to loss of Rs.261 million in the previous year. This indicates the strenuous efforts put in by our members to resolve the impact of 2008-09 financial meltdown to a large extent. Five leasing companies booked profit and two leasing companies declared cash dividend to their shareholders. Modarabas also proved their resilience by maintaining their assets, equity and profitability during the hard times. During the year under review, 21 of 26 Modarabas declared profit and 18 distributed cash dividend to their certificate holders between the ranges of 3% to 73% including one Modaraba which also declared 25% bonus. Detailed review has been provided in the relevant section of the Year Book. MAJOR EVENTS OF THE YEAR LAUNCHING OF YEAR BOOK - 2010 NBFI & Modaraba Association of Pakistan organized a launching ceremony of its first Year Book for the year 2010 on 24th March, 2011, at Pearl Continental Hotel, Karachi. Mr. Muhammad Ali, Chairman, SECP was the Chief Guest. Mr. Asif Jalal Bhatti, Executive Director, Mr. Shahid Naseem, Executive Director, Mr. Hasnat Ahmed, Registrar Modaraba and Mr. Nasir Askar, Director, NBFC attended the ceremony. The ceremony provided a useful forum for interaction amongst the Chief Executives and other senior members of the Sector with the regulatory authorities. FIRST ANNUAL GENERAL MEETING OF THE ASSOCIATION First Annual General Meeting of NBFI & Modaraba Association of Pakistan was held on 31st October 2011, at Pearl Continental Hotel, Karachi. The members discussed various operational difficulties and the solutions proposed by the Association, approved the annual audited accounts for the period ended 30th June 2011 and appointed auditors for the ensuing year ending 30th June 2012. BEST PERFORMANCE AWARDS CEREMONY Best Performance Awards Ceremony, to acknowledge the performance of the outstanding members of the Association, was held on 31st October 2011. Based on the results of 30th June 2011, the following members were adjudged as the best performers according to the criteria approved

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previously by the Executive Committee. The awards were given by the Chief Guest, Mr. Muhammad Ali, Chairman, SECP First Position Second Position Third Position Special award Allied Rental Modaraba First Habib Modaraba First Imrooz Modaraba ORIX Leasing Pakistan Limited

This year, special trophies were also given to the following companies who have completed 25 years or more of their business activities. Their contribution as sector pioneers was acknowledged and appreciated by the members: B. R. R. Guardian Modaraba First Habib Modaraba ORIX Leasing Pakistan Limited WEBSITE OF THE ASSOCIATION Website of NBFI & Modaraba Association has been upgraded and being used to disseminate various types of information, data and other news items. The members are encouraged to use the web to share their activities and suggestions. RENOVATION OF OFFICE PREMISES Office premises of the Association have been completely renovated and an Auditorium added with a capacity of 40-50 persons with quality furniture and fixtures. Previously, the Association was holding its events in the hotels causing a heavy burden on its revenue. Here, I would like to appreciate and thank all those members who graciously contributed to meet the renovation expenses. After completion of the renovation work, the Association has arranged a number of workshops, courses and also meetings with SECP Executives. In addition, the Auditorium has been rented out on commercial basis. It is our endeavor to hold more workshops, seminars and courses to improve the human capital of our members. The facility will also be marketed to supplement the Association's revenue. REGULATORY COORDINATION MEETINGS WITH CHAIRMAN, SECP In addition to the continuous interaction with the SECP, a meeting of the Executive Committee was held with the Chairman, Securities & Exchange Commission of Pakistan on 24th March 2011, which was also attended by senior Executives of SECP. The meeting was focused to discuss in detail all problems and issues being faced by the Leasing, Investment banking and Modaraba companies. The Association presented a comprehensive review of the situation and requested the Chairman, SECP for relaxation in the regulatory requirements of minimum equity, provisioning of NPLs and meeting prudential ratios for NBFI Sector to help tide over the critical period. The Chairman, SECP assured to take measures to resolve the issues.

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In a follow up meeting on 31st October 2011, pertinent Sector requirements were again presented before the SECP Chairman and Executives. Since then, a number of actions have been taken by the SECP to deal with the intrinsic issues of the NBFI Sector, including its re-structuring and revival. MEETING WITH REGISTRAR MODARABA A meeting of the Chief Executives of the Modaraba sector with Mr. Jawed Hussain, Registrar Modaraba and his colleagues was arranged at the Association Office on 23rd September 2011. This was the first meeting of the CEOs of Modaraba sector with Mr. Jawed Hussain after his taking over as Registrar Modaraba. The meeting provided a useful forum to all stakeholders to hold constructive and detailed deliberations on the present and future of Modarabas. The focus was also on the implementation of the Shariah Compliance and Shariah Audit Mechanism to improve Shariah compliance of Modarabas for all business activities and transactional methodologies. The meeting was an interactive session in which a number of issues including the practicalities of Shariah compliance audit were also discussed. NBF REFORM COMMITTEE In a significant initiative taken during the year, the Securities & Exchange Commission of Pakistan (SECP) have constituted a Committee comprising representatives of the financial sector components and SECP Executives for furnishing recommendations for the promotion and growth of a sustainable NBFI Sector. The Association is duly represented in the NBF Reform Committee which will review the NBFI regulatory regime, permissible activities and available products vis--vis the best international practices. It will identify factors inhibiting the growth of NBFI Sector and recommend measures to be taken by SECP, market players, federal and provincial governments, State Bank of Pakistan and other stake holders to remove impediments, eliminate regulatory arbitrage and create a level playing field for development of a robust NBF Sector, to promote different categories of assets to channelize savings to the capital and debt market and improve outreach to the small and medium sector. NBF Reform Committee has since held a number of meetings and its deliberations are entering a conclusive phase for formation of specific strategies. When completed, the effort being spearheaded by SECP , with the active participation of industry representatives, will transform the scope and future of NBFIs and Modarabas and also result in emergence of various conventional and Islamic NBFIs. MODARABA MANAGEMENT FEE Modaraba Circular 1 of 1995 restricted payment of management fee, even in a profitable year, till such time that the previously accumulated losses of the Modaraba were fully wiped off. On representations made by the Association of hardship being experienced by the Modaraba Companies in this respect, the Registrar issued Circular 15 of 2011 allowing the Modaraba Companies to charge the prescribed management fee in such cases, out of net annual profit of Modarabas, provided 90% of the available profit after allocation to statutory reserves is also distributed amongst the certificate holders. SHARIAH COMPLIANCE AND SHARIAH AUDIT MECHANISM Another significant development during the year was that Registrar Modaraba issued Circular No. 8 of 2012 containing detailed guidelines for Shariah Compliance and Shariah Audit Mechanism for Modarabas. Prior to finalization of these guidelines, an intense consultative process was undertaken

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by seeking input of members, holding various discussions of the Executive Committee and eventually holding a meeting of Chief Executives of Modarabas with the Registrar Modaraba. After carefully considering all aspects of the matter, the guidelines were finalized and issued in February 2012. The guidelines will improve the quality of existing compliance and eliminate the risk of any inadvertent violation of Shariah principles by the Modarabas. It will also provide a screening process for investments in shares and securities and other activities. It is an important step towards enhancement of the image of Modarabas as a responsible component of Islamic financial industry and will help build their business links with Islamic banks, Mutual Funds and Takaful companies. The guidelines mark an exemplary consultative interaction between regulators and market operators for which Registrar Modaraba and his team deserves compliments .The Association has undertaken an intensive programme to provide training and proficiency to the staff and management of Modarabas for Shariah compliance and audit by arranging workshops and seminars, the details of which are given in the subsequent section. SME FINANCING NBFIs have been an active intermediary for delivery of credit and advisory services to SME sector which constitutes nearly 90% of all the enterprises in Pakistan, employ 80% of the non-agricultural labor force and contributing about 40% share in the GDP. Historically, NBFIs have been using their banking credit lines for onward disbursements to SMEs. This makes their cost of fund higher than the banks and the SMEs that rely on NBFIs have to pay higher price to obtain finance. Availing further lines from the banks to the NBFIs has also become exceedingly difficult. State Bank of Pakistan (SBP) operates various schemes to promote the SME Sector through commercial banks which, in turn, are not utilizing the funding effectively. Consequently, total SME portfolio of banks under these schemes was Rs.1, 444 million in November, 2011 against availability of funding pool of Rs.22, 822 million with SBP. The overall credit of commercial banks for SME financing out of their total lending has come down from 16.2 percent in 2007 to 7.7 percent in 2011. The Association is making efforts to get NBFIs and Modarabas included as Participating Financial Institution (PFI) for deployment of SBP Schemes to SMEs. A number of meetings have since been held with SBP officials to discuss the imperative of utilizing the expertise and outreach of NBFIs to deliver the unutilized funding to the targeted beneficiaries. When achieved, SBP funding will be of significant benefit to NBFIs and Modarabas which are, at the moment, starved of cash resources. TAXATION ISSUES PROMULGATION OF SINDH SALES ACT The Sindh Assembly on 13th June 2011 passed the Sindh Sales Tax on Services Bills, 2011 enabling the Provincial Government to levy and collect sales tax on services from the financial year starting on July 01, 2011. The sales tax on services was initially levied on 12 selected services as provided in the First Schedule and Second Schedule annexed with the Act. This included services provided or rendered by the Modarabas and Leasing Companies. Subsequently various amendments were issued by the Sindh Revenue Board.

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To deal with the matter, the Association appointed Mr. Adnan Mufti, Partner, Shekha & Mufti, and Chartered Accountants as Sales Tax Advisor on a retainer ship. A number of meetings of the members were held to discuss various issues on the levy of sales tax on services. Subsequently a representation was submitted to the Sindh Revenue Board which resulted in issuance of clarification regarding exemption of various services provided or rendered by Modarabas. Similar clarifications for leasing companies are being obtained. The Association arranged workshops to help the members understand the implications of provincial sales tax regime. FEDERAL EXCISE DUTY During the year under review, a number of leasing companies received demand notices from Inland Revenue for payment of hitherto uncalled for arrears of federal excise duty accumulating to substantial amounts. In various meetings with the Tax Advisor of the Association and the members to formulate a collective approach, it was agreed that the demands were unjustified and should be contested both by the respective Companies and the Association. Accordingly, individual leasing companies took stay orders from the Honorable High Court. Meanwhile, the Association took up the matter with the Chairman, FBR for resolution of this issue with the active support of Chairman SECP and is pursuing a satisfactory resolution of the matter. TRAINING & DEVELOPMENT ACTIVITIES One of the major objectives of the Association is to impart training and skill development to the members' work force. A summary of initiatives taken during the year is given below: WORKSHOP ON "ASSET AND LIABILITY SIDE PRODUCTS One day Workshop on "Asset & Liability Side Products" was organized by the Association. Mr. Omar Mustafa Ansari, Head of Islamic Financial Services Group, Ernst & Young Ford Rhodes Sidat Hyder and Mufti Abdul Sattar Laghari, Shariah Advisor, conducted the workshop on 10th May, 2011. Participants from various Modarabas attended the workshop. WORKSHOP ON SALES TAX A workshop on Sales Tax on Services Act, 2011 was organized by the Association and conducted by Mr. Adnan Mufti, Partner of Shekha & Mufti, Chartered Accountants on September 19, 2011. 25 participants from Modarabas & Leasing Companies attended the workshop. WORKSHOPS ON "SHARIAH COMPLIANCE AND SHARIAH AUDIT REGULATIONS" In order to strengthen the internal Shariah audit departments and to facilitate compliance with SECP Circular No. 8, the Association organized a workshop on "Shariah Audit & Shariah Audit Mechanism" at Karachi in collaboration with the Centre for Islamic Economics (CIE), a division of Darul Uloom, Korangi, Karachi. The workshop was conducted by Shariah Scholars and Shariah Advisors of various Islamic Banks in Pakistan. The participants were awarded Certificates after completion of the workshop. A similar workshop was arranged at Lahore for four days in collaboration with the CIE and with the help and cooperation of First Punjab Modaraba. Seventeen staff members of middle management level of the Modarabas based at Lahore participated in the workshop.

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A two days Seminar was arranged at Karachi for the CEOs, Directors and other senior management of Modarabas on 15th and 16th March to share the pertinent aspects of Shariah compliance and audit. Registrar Modaraba and five SECP Executives also participated in the Seminar which added value towards creating a compliance culture and ensuring a comprehensive treatment of its conceptual and practical aspects. FUTURE OULOOK The multi-dimensional effort being made by the SECP , with collaboration of market operators through the NBF Reform Committee, to carve out a reformed, consolidated and energized nonbanking financial regime will unfold many challenges and opportunities for the existing members and also open the doors for new comers. Our members will need to take a critical view of their past experiences, corporate capabilities, financial and human capital, operating efficiencies and, more importantly, their enterprising skills and futuristic vision. The process is expected to bring about a tide of vast change which will determine the overall shape of the Sector and of those who wish to be a recognizable part of its future. ACKNOWLDGEMENTS On behalf of NBFI & Modaraba Association of Pakistan, I thank Mr. Muhammad Ali, Chairman, Securities & Exchange Commission of Pakistan, Mr. Asif Jalal Bhatti, Executive Director, Mr. Shahid Nasim Executive Director, Mr. Jawed Hussain, Registrar Modaraba, Mr. Nasir Askar, Director NBFI and other Executives of SECP for their continued support and guidance. I am also thankful to the Governor, State Bank of Pakistan and Chairman, Federal Board of Revenue for their cooperation and assistance. I must express my gratitude to the Members of Association, especially members of the Executive Committee, for their continued support and valuable assistance extended to me during my tenure as Chairman of the Association. I also thank the Secretary General and staff members of the Association for their hard work and assistance in discharging my responsibilities. It has indeed been a privilege to serve the Sector with which a long period of my professional life has been associated. May I wish my colleagues in the industry and the future office bearers of the Association every success in their endeavors!

Basheer A. Chowdry Chairman

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Articles

Shari'ah Governance Model (SGM) And Its Four Basic Pillars

By Imran Hussain Minhas
Governance is a method which an organization adopts to ensure that components of the organization follow the set rules, regulations, policies and processes. Governance is said to be good when it primarily ensures achievement of objectives with the existence of effective risk management system, transparency, fairness, responsibility, accountability and independence. Good governance is termed as corporate governance when a business entity is operated, regulated and controlled by the well designed risk management policies, processes, corporate regulations, rules and laws that lead the entity to achieve its ultimate goals. What is Shari'ah Governance? Shari'ah Governance is simply the alignment of corporate governance according to the Islamic principles. Specifically, Shari'ah governance is "the set of institutional and organizational arrangements, policies, processes, procedures rules, regulations and laws which leads the organization towards Shari'ah compliance". Shari'ah governance applies to Islamic Financial Institutions (IFI) as its compliance is the only reason for an IFI to exist. Shari'ah Governance is based on four pillars, discussed in the subsequent parts of this article, and is monitored, either through a Shari'ah Board or through a dedicated internal Shari'ah Review Department, working under the Board of Directors. Why Shari'ah Governance? Since the last three decades, Islamic banking and finance (IBF) has showed a tremendous growth in all parts of the world. It has reached to more than 70 countries of the world which also includes non-Muslim jurisdictions like London, Japan, China, South Korea, Singapore, Germany and Hong Kong. IBF is getting its share in the financial system with a rapid growth rate of over 20%. According to Ernst and Young, the assets of Islamic Finance will grow to US$ 1.1 trillion in 2012 from US$ 826 billion in 2010. The analysts from Deutshe Bank have projected the growth of Islamic banking assets to US$ 1.8 trillion by the end of 2016. This growth is confirming that Islamic banking and finance is a feasible substitution to the conventional financial system. The globalization of Islamic finance has reinforced the mysticism of Islamic Shari'ah and every business activity which demonstrates growth and involves public interest, needs to be regulated by a set of rules and regulations. The growth of Islamic finance demands that IFIs be regulated through such set standards which are capable of raising early warning signals of Shari'ah non-compliance. The standards or Shari'ah Governance is also necessary to maintain the trust of clients of Islamic financial institutions in the IBF and to safeguard the interest of investors and other stakeholders in the Islamic financial system. To achieve a certain level of maturity, regulators of Islamic financial institutions need to address the Shari'ah regulatory issues by the legitimate and sound Shari'ah Governance model based on the true principles of Islam. A comprehensive Shari'ah governance model is based on the four basic pillars discussed hereunder. Four Basic Pillars of a Shari'ah Governance Model It is believed that political support is a driving force to promote Islamic finance in any country. Yet an accommodative regulatory and supervisory framework for effective Shari'ah governance is also

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imperative for its growth. It would not be wrong to call Shari'ah Governance as a brain of Islamic financial industry. It provides a complete system to ensure compliance of Islamic principles of doing business. By ignoring the Shari'ah Governance, one cannot guarantee that a true and successful Islamic financial system and markets are in place. I believe a comprehensive Shari'ah Governance system is based on following four pillars:
1- Management and Supervision Role of Board of Directors Organization structure Shariah focused policies and infrastructure Ligitimacy and acceptance of the business Code of ethics 2- Shariah Advisory - Independent Shariah Advisory - Shariah Research - Product Development - Shariah Training

Shariah Governance
3- Shariah Compliance and Review Internal controls Implementation of policies Shariah review and remedial actions Internal Shariah Audit External Shariah Audit 4- Transparency and Disclosure Reporting MIS Adoption of AAIOFI Standards Shariah Compliance Certificate

1- Management and Supervision Management is the first pillar of Shari'ah Governance and Board of directors (BOD) comes first in the management. BOD, senior management and organizational structure show a complete set of behavior within the organization. The success of any entity, specifically the IFI, entirely depends on willingness of the management to adopt and implement Islamic principles in the organization. The provision of adequate resources, system procedures, infrastructure and code of ethics for acceptance of business and its legitimacy according to Shari'ah Governance entirely depends on the management. Providing proper policies and systems will be inadequate if they are not implemented and supervised positively. For better results, bare minimum requirements for management may be prescribed by the regulators, which may include the following:
l

Fit and proper criteria for the BOD and senior management;
l

Shari'ah risk management policies containing a systematic approach to identify, measure, treat and monitor Shari'ah non-compliance risk;
l

Duties and responsibilities of the Shari'ah Board/Advisors;

l

Introduction of financing agreements and Shari'ah compliance mechanism to ensure that the operations of the IFI are Halal and free from Riba, Qimar and Gharar;
l

Screening process for investment in shares and securities, process of income purification and management of charity; 2- Shari'ah Advisory Board An Independent Shari'ah Advisory Board or Shari'ah Advisor is the second important pillar of the Shari'ah Governance model. Preferably the Shari'ah Board is established in two tiers-first at the

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regulatory level, the central Shari'ah Advisory Body and the other at internal level of the IFI, the Inhouse Shari'ah Advisor/Board. Role of both the advisory boards are discussed hereunder, separately: Central Shari'ah Advisory Body (CSAB) -The apex Shari'ah Advisory body of the country, which defines basic structure of Islamic financial system in the country. This body may be assigned the task to approve code of Shari'ah compliant business activities, financing agreements, policies, directions of IFIs in the country as a final authority for Shari'ah matters and disputes. Shari'ah Advisory Board of IFI - The management of IFIs does not possess the in-depth knowledge of Shari'ah and is unable to interpret the day to day sensitive Shari'ah issues. To cope up the deficiency of the management in the Shari'ah understanding, another tier of qualified and independent Shari'ah Board or Shari'ah Advisor is required to be engaged by the IFI for Shari'ah interpretations, ruling, fatwas, product development, review of business process and agreements. The Shari'ah Board may also be given the task to conduct research and arrange training programs for the IFI's staff in accordance with the principles of Shari'ah and objectives of Islamic Law i.e. Maqasad Ash-Shari'ah. 3- Shari'ah Compliance and Review Shari'ah compliance and review is the third important pillar of the Shari'ah Governance Model. Shari'ah review and assessment of adequacy of internal controls is a regular feature of the Shari'ah compliance. For this purpose internal Shari'ah audit department, under the internal audit committee of the Board, is to be established with the objectives to ensure compliance and to develop Shari'ah non-compliance risk awareness culture in the organization. However, due to various reasons the internal audit is not considered a sufficient and reliable tool by the external users. Therefore, to give a greater confidence to the stakeholders of IFIs, an independent external Shari'ah audit is to be conducted by the statutory auditors, for which they are required to build up their capacity by engaging qualified Shari'ah auditors in their teams. Till the time the audit firms develop a reliable Shari'ah audit system, Shari'ah review of the operations and transactions of IFIs may be conducted by their in-house Shari'ah Board or Advisor on periodical basis. 4- Transparency and Disclosure The fourth pillar, transparency and disclosure, is a critical part of the Shari'ah Governance Model. Transparency and disclosure always have material impact on the cost of capital, reputation, investors' decision and stock prices. Stakeholders, shareholder and general public are always interested in correct and timely information of a company for their investment decisions. Information is of two types, financial and non-financial. Positive information on the affairs of the organization makes them a blue chip and it becomes easy for the organization to raise funds from the general public or financial institutions at the lower cost. A well planned management information system is also essential for the top management. Timely and correct information facilitates the management to take corrective actions and future decisions which may ultimately affect their business, profitability, competition and growth. Major areas of disclosure:
l

Information about the IFI, business strategy, business trends, major business plans, major shareholding, ownership and voting rights.

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Information about the management i.e. composition of board of directors and key executives, compensation.
l

Information about Governance structure- good practices, delegation of authority, risk areas, policies, key performance indicators etc.
l

Information about the financial position, key financial indicators,

l

Material issues affecting employees and other stakeholders

l

Foreseeable risk factors

l

A Shari'ah compliance certificate duly issued by the External Auditor, Shari'ah Board/ Advisor. To maintain the confidence and trust of the customers in the Islamic banking, it is imperative to introduce and implement the Shari'ah Governance mechanism for the growth and stability of IFIs and to minimize Shari'ah non-compliance risk. A reliable Shari'ah Governance system can ensure Shari'ah compliance besides enabling the regulators to regulate the Islamic industry in the least risk of Shari'ah non-compliance.

Imran Hussain Minhas is a professional banker and is serving as Joint Director Modarabas (Islamic Financial Institutions), SEC Pakistan. He has also served in the visiting faculty of International Islamic University, Islamabad, Pakistan, as Associate Professor. He can be reached at hussain.minhas@gmail.com.

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Shariah Compliance & Shariah Audit Mechanisms

Mufti Abdul Sattar Laghari
It is indeed very encouraging and a means of great joy and pleasure, that the graph line of inclination towards Islamic Banking and Finance within our country and throughout the world, is going up day by day. This has resulted, number one, in a countable increase in the establishment of numerous new Islamic Financial Institutions, Islamic Banks as well as Banking divisions or windows in Conventional Banks throughout the world; number two, the increase in the concentration of regulators of IFIs towards the development of a proper regulatory framework and strategic policy paradigm. These developments not only indicate towards the truth of Islam but also authenticate its status as the only religion that has the ability to guide humanity in contemporary issues even after 1500 years. Another significant achievement is the realization by Muslims that the teaching of Islam should not be restricted merely to the Mosque but should also extend to other branches of their lives. Especially with regards to economic issues, it seems as though a large majority of Muslims have made a firm commitment in the teaching of Islam. Though Modarabas have been working since the 1980s as Islamic Financial Institutions in Pakistan, they lost their reputational attitude as an IFI within the country to such extent that Al Meezan Investment Ltd included the Modarabas in the list of prohibited companies to do business with them or to make any investment in them. The recent effort made by the regulator SECP issuing Shariah Compliance and Shariah Audit Mechanism guidelines, will help tremendously in mitigating the reputational risk of Modarabas. So, in these lines, we will talk about Shariah Compliance Inshallah. What is Shariah Compliance It is nothing but a system of compliance having special emphasis on Shariah aspects with relevant provisions of existing laws, rules, regulations, policies and procedures related to Islamic Banking & Finance. Or we can say, In Islamic finance, Shariah compliance means submitting business transactions conducted by man to God's Law, which include the prohibition of Riba (interest), Gharar (ambiguities), Maisir (gambling), Jahala (fraud) in financial transactions. More simply, Shariah Compliance means, the Muslims shall have to dutifully observe Shariah principles in the conduct of business and day to day financial transactions. What is the reason for Shariah Compliance or Why Shariah Compliance is fundamental in Islamic finance We are believers (Mukallaf), because we have accepted Islam and we are blessed with the blessing of Iman in Allah, and we have Iman in all things that are required to be with Faith upon them. We have promised to Allah Taala in Heaven before our creation on earth to obey Him, as Holy Quran says,

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AL-MITHAQ (THE PRIMODIAL COVENANT)

When thy Lord drew forth from the Children of Adam, from their loins their descendants, and made them testify concerning themselves, (saying), Am I not your Lord (Who cherishes and sustains you)? They said: Yea! We do testify! (This), lest ye should say on the Day of Judgement: Of this we were never mindful. (Al-Araf: 172) So, by obeying Allah's commandment, a believer may indeed submit his desires to Allah's Will. And this is the way how he could pay his due to the Creator. So we are bound to fulfill our promise to Allah Taala and this is the reason to be Shariah compliant. Further, it is a fact that Islamic finance has to replete with Shariah rulings & opinions issued by regulators and Shariah Advisors concerning legitimacy of Islamic financial products. Shariah Compliance is so far fundamental for IFIs because validation of contracts, earning Halal and distribution of Halal in society and fulfilling demands of common & pious investors and dedicated Islamic banks and fund managers depends upon the level of Shariah Compliance. On the other hand, if, unfortunately, we fail to comply with Shariah Rulings, could result in SBP/SECP penal actions or disciplinary actions against Modaraba or Responsible. Individually, failure to comply may be considered minor, but indicates to sector and regulator control deficiencies which again is more than a minor sin. Failure to comply with Shariah may lead to a War against Allah Taala because this failure will certainly change the nature of transactions from valid transactions to Riba based transactions. Ultimately, IFI will suffer Loss of income and loss of reputation. It should also be noted that an organization that claims to be an "Islamic Financial Institution", has to follow Shariah in its activities. As Allah Taala says in His Quran:

"Those who claim and say that Allah is our Sustainer & Lord and after that they fulfill their claim Angels will descend upon them..". We are also bound to be Shariah Compliance as it is a regulation in our foundation stone here in Section 10 of the Modaraba Companies (Floatation and Control Ordinance, 1980, (the Modaraba Ordinance) provides that no Modaraba shall be a business which is opposed to the injunctions of Islam. How Shariah Compliance is acquired We mean Shariah Compliance here as state of our all business activities being in accordance with: 1. 2. The Shariah Guidelines Issued by AAOIFI (Accounting & Auditing Organization for Islamic Financial Institutions) The accounting standards issued by ICAP i.e. IFAS-I & IFAS-II and all forthcoming accounting standards.

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3. 4.

Shariah Compliance and Shariah Audit Mechanism (SCSAM) issued by SECP, circular No.8 of 2012. The rulings, fatawa and opinion of the Shariah Advisor of your Institution and MAP.

Salient Features of Shariah Compliance Mechanism

l

Prohibition of transactions on a Riba basis.

l

Elimination of Qimar & Gharar in contracts.

l

Prohibition in dealing in sinful activities (media TV channels) & Products (drugs, alcohol & tobacco)
l

Contracts must be considered as per Shariah requirements.

l

Comply to Laws of Land & Regulators.

l

Strengthen IFI in letter & spirit.

l

Mitigate the reputational & operational risk.

l

Maintain trust of the stake holders. It will result into a society being blessed by Allah Taala in this world like a true Muslim society.

"Oh Ye Messengers! Do eat the Halal & purified edibles that we have given you and do good deeds." Mechanism of Shariah Compliance Modarabas, if willing to be Shariah compliant, may adopt the following simple mechanism for Shariah compliance; 1. 2. 3. 4. 5. 6. 7. 8. Modaraba shall have to observe strictly with the approved prospectus by Religious Board. Modaraba shall use Approved Model Agreements by SECP for financing. Modarabas shall get their every new products approved by Religious Board. Modaraba shall get prior approval of RB in case of major changes in model agreements. Modaraba shall appoint a religious scholar as Shariah Advisor for getting guidelines in their daily activities and transactions. Modaraba should introduce a system of Internal Shariah Audit, so as to ensure that the goals and objectives of Shariah compliance are achieved. The Internal Shariah Audit shall be carried out in conformity with Shariah rules and principles, guidelines and instructions issued by the SBP/SECP and Shariah Advisor of the MODARABA/MAP . In general, the objective of a Shariah Audit exercise is to ensure that the activities carried out by a Modaraba do not contravene the Shariah.

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9.

The scope and area of internal Shariah Audit should be; 1. Audit of financial statements of Modaraba 2. Operational aspects of Modaraba 3. The organizational structure and the people involved in executing the key activities of each business area of the Modaraba 4. IT application system.

A Matter of Great Concern It is a matter of great concern today that instead of going deep into a matter and understanding it from its roots, some criticize based on the content of with a little bit of general reading. Thereafter, if a difference of opinion arises with an expert or scholar in this field, these criticisms do not even hesitate to make that person a target of opposition. It is as if they have adopted an attitude that neither will they play nor will we let any one else play. In other words, neither will they get involved in finding Shariah complaint practical solutions for the Ummah nor will they allow anyone else to do so. The result of such unjustified opposition is nothing but creation of a lot of confusion in the mind of the general public. This reminds me of a little anecdote. There was once a famous artist who had a lot of confidence in his skill. He painted a beautiful painting and hung it in the middle of town with a little note at the bottom of the painting stating that whosoever finds any flaw in the painting should kindly indicate the flaw by placing a mark on it. When the artist came to see his picture in the evening, he found nothing but mark all over his picture and was totally astonished. However, he quickly thought of another plan of action. The next day he painted an identical picture and placed it in the middle of town, but this time the note at bottom stated that those who find any flaw in the picture should kindly rectify it. In the evening the picture was as it was. No one had made any changes.

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A lot of assistance and encouragement is required by scholars and experts who spend their days and nights in understanding the current system and develop Shariah compliant alternatives to Conventional Banking. The critics should give constructive criticism if they have any reservations about any alternative model developed by the scholars rather than making re-marks on their work.

Destructive Criticism Stops Innovations

CURRENT ISLAMIC FINANCING METHODS ARE NOT IDEAL BUT ARE INDEED PERMISSIBLE SOURCE OF BARAKAH It is indeed a reality, and all those who are linked to Islamic academic circles do not deny that the true effects of an Islamic economic system will only show once businesses and financing are conducted under the principles of Musharkah and Modaraba. Our Islamic system of distribution of wealth is clearly manifested in the rules pertaining to Zakat, Usher and other charities as well as the laws of succession. Similarly, when our businesses and financings will be conducted under the principles of Musharkah and Modaraba, there is no reason why we will not see significant positive effects of an Islamic economic system in our society. However, this in no way and no way at all means that adopting Business / financing structures other than Musharkah and Modaraba are totally impermissible. In fact, the truth is that conducting business in any form that does not go against the principles of Shariah, cannot be deemed impermissible. Hence, if Islamic Banks and Modarabas adopt Murabaha, Ijarah and Diminishing

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Musharkah financing within the framework and principles of the Shariah it will be considered incorrect and unjustified to deem these modes of the Finance to be impermissible merely because they are known in the industry as forms of financing so these do not fall under the categories of Musharkah and Modaraba. Hence, Musharkah and Modaraba are considered and believed to be the ideal forms financing but if Murabaha and Ijarah are implemented within the framework of the Shariah as modes of finance, there is no reason to term them impermissible. Hazrat Shaikh ul Islam Mufti Mohammad Taqi Sahib (Dam Fazlohu) mentions in his book "the real and ideal instruments of financing in Shariah are "Musharkah and "Modaraba".

Safety of the Whole Word is to Follow "SHARIAH" (The Islamic LAW)

Mufti Abdul Sattar Laghari is shariah advisor of NBFI and Modaraba Associaltion of Pakistan. He is also shariah advisor of National Bank of Pakistan.

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Accounting and Auditinig Organization For Islamic Financial Institutions (AAOIFI)

INTRODUCTION: AAOIFI was established in 1990 in Algiers under an Agreement of Association between a number of Islamic Financial institutions (IFIs).Its objectives primarily includes development of auditing and accounting standards for IFIs. Accounting, Auditing and Governances Standards (AAGs) are issued by AAOIFIs Accounting and Auditing Standards Board. The Shariah Standards are issued by Shariah Board. These Standards are applicable in a number of countries as a regulatory framework for financial reporting of IFIs. According to IAS-8, when there is no guidance in the International Financial Reporting Standards Framework (IFRS) and International Accounting Standards (IAS) for any specific transaction, accounting standards issued by other standard setting body shall be considered for making accounting policy for such transaction. REGULATORY ACCOUNTING FRAMEWORK In Pakistan, the regulatory financial reporting framework for the Islamic Commercial Banks (ICBs) or the Islamic Banking Divisions of Commercial Banks consists of: International Financial Reporting Standards (IFRS) The Companies Ordinance, 1984, and Various rules and regulations devised by State Bank of Pakistan (SBP) and Securities & Exchanged Commission of Pakistan (SECP) particularly including Prudential Regulations and Circular BSD-4. Until a few years back, there was no financial reporting framework or any deviation from the financial reporting framework allowed to ICBs. There are a few Islamic financial products for which the accounting treatment being followed is not adequate or does not represent the substance of such transactions. GUIDELINES FOR SHARIAH COMPLIANCE IN IBIs According to the issued guidelines for shariah compliance for Islamic banking institutions, following are the financial reporting and general disclosure requirements: IBIs shall follow financial reporting standards for Islamic modes of financing issued by Securities & Exchange Commission of Pakistan under the Companies Ordinance, 1984. However, for modes/areas not covered by these standards, IBIs are encouraged to use AAOIFI Accounting Standards. In the Annual Report, IBIs are encouraged to disclose: Overall basis of working of profit distribution to the depositors; Break up of their financing by Islamic modes of finance and

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Remuneration of Shariah Advisors. In addition, the annual report of conventional banks having Islamic banking branches shall include separate balance sheet and profit and loss statement of their Islamic banking operations. Additional disclosure in the form of cash flow statement of Islamic banking operations is also encouraged. According to instructions for Shariah compliance in Islamic banking institutions, a statement of sources and uses of charity fund is also required. ISLAMIC FINANCIAL ACCOUNTING STANDARDS ISSUED BY ICAP The Institute of Chartered Accountants of Pakistan has appointed a Committee for Accounting and Auditing Standards for Interest Free Modes of Financing and Investments. The Committee comprises of experienced Chartered Accountants and experts from all relevant fields including Bankers, Lawyers, Shariah Scholars and the Representatives from the Regulators. The objective of such a committee is to develop accounting standards for various Islamic financial products. So far the committee has issued two Islamic financial accounting standards (IFASs). IFAS-1 Murabaha has been notified by the SECP through SRO 865(1)/2005 in August, 2005 under Section 234 of the Companies Ordinance, 1984 and accordingly it has now become a part of law for the purpose of preparation of financial statements of banks and similar financial institutions. It is applicable on financial statements beginning on or after 1st January, 2006. IFAS-2 Ijarah has been notified through SRO 431(1)/2007 dated 22nd May, 2007 by the Securities & Exchange Commission of Pakistan (SECP). It is applicable on the financial statements for the periods beginning on or after 1st July, 2007. In view of the representation of Pakistan Banks' Association regarding practical issues in implementation of this standard for the reporting year ended 31st December, 2008, SBP vide its IBD Circular No.01 dated 27th January, 2009, has allowed the implementation of IFAS -2 with effect from 1st January, 2009. It has been clarified that it is applicable prospectively and not retrospectively, In addition, the Committee has also developed a draft for accounting of PLS deposits which is circulated for comments from the stakeholders. A standard for Diminishing Musharaka is in the phase of development. The Committee has also worked on a draft standard for Musharaka which is held pending because of its limited applicability in Pakistan. OBJECTIVES OF FINANCIAL ACCOUNTING OF ISLAMIC BANKS AND FINANCIAL INSTITUTIONS To provide information through periodic reports about: o o o o The entity's financial position; Its results of operations and Cash flows To assist users of such reports in making decisions.

CONCEPT OF FINANCIAL ACCOUNTING FOR ISLAMIC BANKS AND FINANCIAL INSTITUTIONS The statement of concept of financial accounting has been prepared to express basic principles on financial accounting

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LIST OF ACCOUNTING STANDARDS ISSUED General presentation and disclosures in the financial statements of Islamic banks and financial institutions; Murabaha and Murabaha to Purchase Orderer; Modaraba financing; Musharkah financing; Salam and Parallel Salam Ijarah and Ijarah Muntahia Bittamleek Istisna and Parallel Istisna Disclosure of bases for profit allocation between owners' equity and investment account holders; Equity of Investment account holders and their equivalent Zakah Provisions and reserves; General presentation and disclosure in financial statements of Islamic insurance companies; Disclosure of bases for determining and allocating surplus or deficit in Islamic insurance companies; Investment funds; Provisions and reserves in Islamic Insurance companies; Foreign Currency transactions and foreign operations; Investments; Islamic financial services offered by conventional financial institutions; Contribution in Islamic insurance companies; Deferred payment sale; Disclosure on transfer of assets; Segment reporting

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ORIX "ISLAMIC WINDOW"

Head of Islamic Finance, ORIX Leasing Pakistan Ltd

Mujahid Ali Mirza

"And

be fearful of a day when you shall be returned to Allah, then everybody shall be paid, in full, what he has earned. And they shall not be wronged." (Surah Al-Baqarah (2:281) And whatever Riba you give so that it may increase in the wealth of the people, it does not increase with Allah". (Surah Al-Rum (30:39)

Economic justice emphasizes on the need of a viable economy supported by an efficient banking and financial system. In the economic field, it has always been the biggest challenge for the Muslims to reform their financial institutions to bring them in harmony with the dictates of Shariah. Islamic scholars in the last two decades have played a pivotal role and have made remarkable achievements. It has now being widely accepted that Islamic banking ensures equitable distribution of wealth which leads to an inflation free economy and socially responsible banking. Today, more than two hundred and fifty Islamic financial institutions are operating worldwide. Alhamdulillah, Islamic banking system has grown rapidly in Pakistan with annualized growth rate of one percent in term of total market share. The market share of Islamic banking in Pakistan has gone up to 7.3% and with the annualized growth rate it is expected to achieve 15% in the next five years. OLP over the years has introduced a number of products that cater to almost all sectors of the economy. In the last two decades, OLP has emerged as a leading financial institution with proven track record catering to the commercial needs of the business sector. In April 2011, ORIX management decided to come forward in yet another mile stone by inaugurating Islamic Finance Division. The objective of the Division was to develop and promote Islamic finance products in true spirit and in line with the best international practices, ensuring Shariah compliance and transparency. The division formally started its operations from 1st September 2011 by introducing Ijarah and Diminishing Musharakah products for corporate and individual customers. Shariah processes and procedures were further strengthened by appointing Shariah Advisor, who holds Takhassus Fil Fiqh from Jamia

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Darul Uloom, Karachi. ORIX management went one step ahead and conducted one month in-house training sessions for its senior management with collaboration of Centre of Islamic Economics (CIE). The ten sessions training program over Islamic Financing was conducted by renowned scholars from the faculty of Jamia Darul Uloom. The training session gave a comprehensive view about Islamic Economic System, Riba, Qimar and its types with special emphasis on different mode of Islamic financing. After the successful completion of the training program, a certificate distribution ceremony was held at ORIX, Head office. Justice (Rtd.) Mufti Muhammad Taqi Usmani graced the occasion as a Chief Guest and distributed the certificates to the participants. ORIX plans to expand its scope of Islamic operations and product mix in the coming days. In January 2012, ORIX Micro Finance division introduced Ijarah "Rickshaw" product in Lahore. This product was launched with the collaboration of Zazgar Engineering Works Ltd. The launch was a success and encouraging response was received. During the current fiscal year we have plans to open Islamic window in Lahore to cater to the untapped market of Islamic finance in the SME sector. Our emphasis will be on auto & engineering, textile allied, pharmaceutical & chemical and transport sectors. ORIX, in days to come will be spending energies in introducing new Islamic products already approved by the SECP. There is a great scope of Musharakah based products in which OLP can take a lead. We are confident that we will achieve our objective and will make a contribution in Islamic sector as a leading NBFI in Pakistan.

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Role of NBFIs in SME Sector Development

Global Perspective It has long been established that Small and Medium Enterprises form the core of any economy and keep the wheels moving despite recessions and other economic downturns. These are at the same time resilient to external and internal shocks yet very susceptible to certain monetary and fiscal policy changes. A snapshot of the SME sector contribution to employment in selected economies is given below: SME contribution to employment Region USA Europe Arab Countries Singapore Malaysia SME Contribution 70% 75% 33% 62% 56%

Sources: Shandong University of Technology, research report for the EU-GCC Chamber Forum project, Munich Personal RePEc Archive, Petra University Malaysia, Spring Singapore

Contribution of SME to GDP in different economies is also an indicator that shows how crucial this sector is for economic growth and development. Following table shows the SME contribution to GDP in different economies: SME contribution to GDP Region USA Egypt Saudi Arabia Algeria Yemen SME Contribution 51% 33% 25% 77% 95%

In countries like Korea, SMEs have acted as engines of economic growth mainly due to favorable government policies for numerous sectors where SMEs are dominant. SMEs represent 99% of the total number of companies and contribute to 43% of Korean exports.

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SMEs in Pakistan SMEs in Pakistan have a major contribution in the overall economic equation. SMEs constitute nearly 90% of all the enterprises in Pakistan; employ 80% of the non-agricultural labor force; and their share in the annual GDP is 40%, approximately. The sector's significance towards resource distribution can be gauged from its absorption of 78 percent of non-agriculture labour force. While there have been several initiatives to bring about meaningful and positive changes in the state of affairs of SMEs, including SME Policy, establishment of SMEDA, SME Business Support Fund and other similar schemes, there has remained a wide gulf between the service providers and the SMEs. This gulf rather than reducing has increased and is becoming ever wider. There are a host of reasons that have caused hardships and obstacles in the growth of this exceedingly important sector. While there is global consensus on the key role of SMEs, all stakeholders believe that lack of access to finance is one of the major obstacles in the sector's growth. SMEs in Pakistan are confronted with a similar challenge as indicated by the small share of SMEs' loan in total loan portfolio of the banking industry. The share of SME loan in overall loan portfolio is 11.8 percent while SME loan portfolio constitutes only 7 percent of GDP. The recent Government borrowing has significantly pushed the private sector out of the growth state to merely a surviving state. The sector has always been shy of raising bank related finance, relying heavily on trade credits and, very unfortunately, on the informal resources of credit generation. All in all, the sector has faced the worst kind of crises in the past few years. SMEs and SBP's Schemes With a view to address this situation, the State Bank of Pakistan, of its own volition or at the behest of the Government in the wake of the global desire to uplift the SME sector of Pakistan to counter the ever rising escalations in society and to put the youth of the country to productive use, has rolled out several SME Specific schemes. Funds allocated under these Schemes were to be deployed using the selected Commercial Banking channels on a pan-Pakistan basis. After the initial launch of the schemes, several aspects of the same needed to be amended to align with the realistic needs of the market. Nevertheless the current status of the Schemes as per the SBP resources shared with the stakeholders at the 4th SME credit advisory Committee are as follows: SBP Schemes & Utilization: Name of the facility
l l

Limits Allocated Rs. In million 4,105.00 8,755.00

Rs. In million Utilization % 600.35* 313.63

Latest Position 14.62% 3.58%

Credit Guarantee Scheme for Small & Rural enterprises Scheme for Revival of SMEs & Agricultural Activities in Flood Affected Areas
l

Refinance Schemes for Modernization of SMEs

9,962.00

249.79

2.51%

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*Total SME Portfolio of banks under these schemes is Rs. 1,444.43 million in November 30, 2011 against the availability of funding pool of Rs 22,822 million. The overall credit of commercial banks has come down from Rs 437 billion in December 2007 to Rs 268 billion in September 2011. In percentage terms, the share of SME financing in total lending of the banks has come down from 16.2 percent in 2007 to 7.7 percent in 2011. (Source: SBP - 4th SME CAC held on January 4, 2012) This dismal picture is a depiction of the reluctance of Commercial Banks to enter the SME sector. It further transpired at the meeting that the Commercial Banks, after their initial efforts, are categorically not inclined to further the cause of the SBP of deployment of funds to the SME Sector, which they clearly indicated at the meeting. SMEs and Commercial Banks Conventional banking companies tend to appraise SMEs on the same parameters as their corporate clients, whereas the needs of each segment of the SMEs require its own unique appraisal parameters. This results in a tendency of higher failure rates as the appraisals, more often than not, fail to capture the economic reality of the business. Furthermore, Banks have several avenues with more secured returns vis--vis corporate clients and the risk-free Treasury Bills. In such circumstances, the need for the high-risk SME clients' portfolio is an unrealistic demand on the banks' resources. There are several reasons for the banks' reluctance towards deployment of funds, guaranteed or otherwise, towards the SME Sector, some of which are given below: a. b. c. d. e. SMEs typically have small requirements that entail huge administrative costs to the banks; SMEs are generally high risk businesses due to their size of operations, limited capital and asset base etc. They are therefore more prone to economic fluctuations; SMEs do not have adequate security to place as collateral that is acceptable to the banks; SMEs (particularly the lower tier) feel more comfortable in an informal environment due to lack of knowledge and exposure; Banks tend to extend Running Finance facilities rather than Term Finance-thereby causing mismatch where the clients utilize these funds for capital expenditure (asset purchase); even otherwise, the repayment performance of SME clients is at a pace that is usually not aligned with the guidelines provided as per the Prudential Regulations; this in turn results in increase in the Banks' Non-Performing Loans, thus Suspension of income and then Provisioning; Legal measures available for Recovery of defaults are very slow and cumbersome resulting in impacting the banks' bottom line and hence return to share holders; A number of banks have local and foreign share holders who vehemently object to deployment of funds in high-risk avenues.

f. g.

On the other hand, SMEs refrain from obtaining credit from the banks due to following reasons: a. b. Absence of proper systems and lack of proper documentation; Limited management capabilities;

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41

c. d. e.

Limited resources to fulfill banking requirements; Religious beliefs; Annoyance at banking staff for their officious behavior even in normal circumstances.

In the wake of above factors, SMEs' reliance on banks has historically been minimal. Although banks have, over the years, entered in the market and selectively provided finance to SMEs, the sector still remains outside the domain of banks and greatly underserved. Non-Banking Financial Institutions (NBFIs) & the SME Sector: Over the past more than two decades, Leasing Companies and Modarabas catered to the varied and unique demands of the SME Sector. From an asset base of Rs. 63 billion in 2003, the combined asset base of NBFIs rose to Rs. 124 billion in 2008. Of this asset base a substantial amount was deployed to the various segments of the SME sector. The NBFI sector not only provides customized financial solutions to the SME sector but also assists many of their SME clients to become bankable entities. NBFIs have historically been an efficient intermediary of advisory and credit delivery to SMEs. The situation changed drastically after 2008 due to the financial melt -down and with the change in the monetary policy that increased the discount rate substantially, thereby diverting all the commercial banks' and DFIs' financing towards treasury bills. This resulted in impacting the volumes of the NBFIs which in turn dried up the SME sector. Total Investment in SME Financing for the years 2009, 2010 and 2011 are as follows: 2009 2010 2011 Rs.8,845 million Rs.8,514 million Rs.7,300 million

Over the years, the NBFIs dealing with different tiers of SMEs, after going through the trial and error phase, are now well positioned to continue to cater to the sector in an efficient and cost effective manner. However, in view of funding constraints, this well-established, regulated and licensed sector has limited capacity to support SMEs. NBFIs & Donor Funds Historically, NBFIs have been using their banking lines for onward disbursements and advances. This makes their cost of fund higher than the banks. SMEs that rely on NBFIs have to therefore, pay a higher price to obtain finance. Multilateral Agencies and international economic development agencies offer SME-specific grants that are channelized through the State Bank of Pakistan (SBP). However, these grants that provide a cheaper source of funds have not been diverted to the NBFIs that are the major finance providers to the SME sector. Instead these grants either go to commercial banks or dry out unutilized. NBFIs have had experience in deploying such funds that were allocated directly to the leasing sector by the Swiss Development Fund.

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Year Book 2011

NBFIs as a Hedge for Banks/DFIs If an analysis is done with the inclusion of NBFIs in the loan portfolios of banks, it will be seen that the NPLs position of the Banks was much lower when they deployed funds through NBFIs. The reason being that the NBFIs were hedging the risks that the banks now bear on their own. The role of NBFIs becomes critical as providers of finance to SMEs as has been evidenced in the past. The role of NBFIs in hedging the commercial banks' risk has become evident in the recent past. Therefore, it is essential that the SBP takes cognizance of the situation and without further delay arrests this degradation of the two most important sectors of our economy i.e. SME and NBFI Sectors. At the 4th SME CAC, it transpired that the Microfinance Banks are utilizing the services of NGOs in deployment of SBP Schemes where the SBP extends Credit Guarantee on behalf of the NGO. This serves to ease the liquidity constraints of the NGOs/MFBs. Therefore, it is suggested that a similar scheme may be devised for NBFIs and the commercial banks/DFIs. Conclusion:
l

State Bank of Pakistan and SECP should take cognizance of the needs of all the stake-holders and ensure availability of efficient intermediaries so that the targeted sector can benefit.
l

SME Sector in the context of practicalities of its needs as frequently advocated by the Trade and Industry representatives and bodies of SME sector merits specific focus and timely action for its financing.
l

SBP for its own objective of SME Uplift through deployment of specialized schemes should not restrict the disbursement of funds to commercial banks only.
l

Commercial banks requiring a hedging mechanism for the SME sector by using intermediation of NBFIs; and NGOs may be encouraged by the Regulators to do so.
l

The Economy of the country in dire need of uplift through employment and GDP growth to which SME Sector can contribute substantially.

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Events & Activities

First Annual General Meeting of the Association

First Annual General Meeting of NBFI & Modaraba Association of Pakistan was held on 31st October 2011 at Pearl Continental Hotel, Karachi. The members discussed various operational difficulties and the solutions proposed by the Association, approved the annual audited accounts for the period ended 30th June 2011 and appointed auditors for the ensuing year ending 30th June 2012.

Mr. Basheer A. Chowdry, Chairman NBFI & MAP addressing the AGM, Mr. Murtaza Ahmed Ali, Vice Chairman and Mr. Muhammad Samiullah, Secretary General are also present

A view of the Annual General Meeting

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Year Book 2011

Best Performance Awards Ceremony

Best Performance Awards Ceremony to acknowledge the performance of the outstanding members of the Association was held on 31st October 2011. Based on the results of 30th June 2011, the following members were adjudged as the best performers on the basis of criteria approved previously by the Executive Committee. The awards were given by the Chief Guest, Mr. Muhammad Ali, Chairman, SECP. First Position Second Position Third Position Special award Allied Rental Modaraba First Habib Modaraba First Imrooz Modaraba ORIX Leasing Pakistan Limited

Mr. Muhammad Ali, Chairman, SECP presenting First Prize to Mr. Murtaza Ahmed Ali, CEO, Allied Rental Modaraba. Mr. Basheer A. Chowdry is also seen in the picture

Mr. Muhammad Ali, Chairman, SECP presenting the second prize to Mr. Muhammad Shoaib Ibrahim, CEO, First Habib Modaraba, Mr. Basheer A. Chowdry and Mr. Murtaza Ahmed Ali are also seen in the picture

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Mr. Muhammad Ali, Chairman, SECP presenting the third prize to Mr. Ateed Riaz, CFO of First Imrooz Modaraba. Mr. Basheer A. Chowdry and Mr. Murtaza Ahmed Ali are also present

Mr. Muhammad Ali, Chairman, SECP presenting a special prize to Mr. Teizoon Kisat, CEO, ORIX Leasing Pakistan Ltd. Mr. Basheer A. Chowdry and Mr. Murtaza Ahmed Ali are also seen in the picture

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Trophies to Members Completed 25 Year of Business

This year, special trophies were also given to the following companies who have completed 25 years or more of their business activities. Their contribution as sector pioneers was acknowledged and appreciated by the members: B. R. R. Guardian Modaraba First Habib Modaraba ORIX Leasing Pakistan Limited

Mr. Muhammad Ali, Chairman, SECP presenting a shield to Mr. Rafiq Dawood on completion of 25 years of business of B.R.R Guardian Modaraba

Mr. Muhammad Ali, Chairman, SECP presenting a shield to Mr. Muhammad Shoaib Ibrahim, CEO, First Habib Modaraba on completion of 25 years of business operation of First Habib Modaraba

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Mr. Muhammad Ali, Chairman, SECP presenting a shield to Mr. Teizoon Kisat, CEO, ORIX Leasing Pakistan Ltd on completion of 25 Years of business of ORIX Leasing Pakistan Ltd.

Mr. Basheer A. Chowdry, Chairman, NBFI & MAP presenting Memento of the Association to Mr. Muhammad Ali, Chairman, SECP

Mr. Muhammad Ali, Chairman, SECP, addressing the participants. Mr. Basheer A. Chowdry and Mr. Muhammad Samiullah are also seen in the picture

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Year Book 2011

Renovation of Office Premises

The office premises of the Association have been completely renovated and an Auditorium with a capacity of 40-50 persons has been built with quality furniture and fixtures. Previously, the Association was holding its events in the hotels causing a heavy burden on its revenue. Here, I would like to appreciate and thank all those members who graciously contributed to meet the renovation expenses. After completion of the renovation work, the Association has arranged a number of workshops, courses and also meetings with SECP Executives. In addition, the Auditorium has been rented out on commercial basis. It is our endeavor to hold more workshops, seminars and courses to improve the human capital of our members. The facility will also be marketed to supplement the Association's revenue.

A view of Conference Room of NBFI & MAP

A view of the office of NBFI & MAP

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Meetings with Chairman, SECP

In addition to the continuous interaction with the SECP , a meeting of the Executive Committee was held with the Chairman, Securities & Exchange Commission of Pakistan on 24th March 2011 which was also attended by Senior Executives of SECP. The meeting was focused to discuss in detail all problems and issues being faced by the Leasing, Investment banking and Modaraba Sector. The Association presented a comprehensive review of the situation and requested the Chairman, SECP for relaxation in the regulatory requirements of minimum equity, provisioning of NPLs and meeting prudential ratios for NBFI Sector to help tide over the critical period. The Chairman SECP assured to take measures to resolve the issues. In a follow up meeting on 31st October 2011, pertinent sector requirements were again presented before the SECP Chairman and Executives. Since then, a number of actions have been taken by the SECP to deal with the intrinsic issues of the NBFI Sector, including its re-structuring and revival.

Mr. Muhammad Ali, Chairman, SECP addressing the Participants of the Meeting. Mr. Basheer. A. Chowdry is also present

Participants of the meeting

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Year Book 2011

Meeting with Registrar Modaraba

A meeting of the Chief Executives of the Modaraba sector with Mr. Jawed Hussain, Registrar Modaraba and his colleagues was arranged at the Association Office on 23rd September 2011. This was the first meeting of the CEOs of the Modaraba sector with Mr. Jawed Hussain after his taking over as Registrar Modaraba. The meeting provided a useful forum to all stakeholders to hold constructive and detailed deliberations on the present and future of Modarabas. The focus was also on the implementation of the Shariah Compliance and Shariah Audit Mechanism to improve Shariah compliance of Modarabas for all business activities and transactional methodologies. The meeting was an interactive session in which a number of issues including the practicalities of Shariah compliance audit were discussed.

Mr. Basheer A. Chowdry presenting a shield to Mr. Javed Hussain, Mr. Murtaza Ahmed Ali and Mr. Muhammad Samiullah are also seen in the picture

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A view of the participants of the meeting

L-R Mr. Murtaza Ahmed Ali, Mr. Javed Hussain, Mr. Basheer A. Chowdry and Mr. Muhammad Samiullah

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Year Book 2011

Launching of Year Book - 2010

NBFI & Modaraba Association of Pakistan organized a launching ceremony of its first Year Book for the year 2010 on 24th March, 2011 at Pearl Continental Hotel, Karachi. Mr. Muhammad Ali, Chairman, SECP was the Chief Guest. Mr. Asif Jalal Bhatti, Executive Director, Mr. Shahid Naseem, Executive Director, Mr. Hasnat Ahmed, Registrar Modaraba and Mr. Nasir Askar, Director, NBFC attended the ceremony. The launching ceremony was also attended by the Chief Executives and other senior members of the Modaraba, Leasing and Investment Bank sectors.

Mr. Muhammad Samiullah, Secretary General, NBFI & MAP presenting the Year Book 2010 to Mr. Muhammad Ali, Chairman, SECP.

Participants of the Launching Ceremony.

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Mr. Basheer A. Chowdry, Chairman, NBFI & MAP showing the Year Book 2010 to the participants

Mr. Basheer A. Chowdry, Chairman, NBFI & MAP presenting the Memento to Mr. Muhammad Ali, Chairman, SECP

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Year Book 2011

Workshop on "Asset and Liability Side Products

A one day Workshop on "Asset & Liability Side Products" was organized by the Association. Mr. Omar Mustafa Ansari, Head of Islamic Financial Services Group, Ernst & Young Ford Rhodes Sidat Hyder and Mufti Abdul Sattar Laghari, Shariah Advisor, conducted the workshop on 10th May, 2011 at Pearl Continental Hotel, Karachi. Participants from various Modarabas attended the workshop.

Group photo of the participants and organizers of the workshop

Mr. Abdul Ghaffar Umer inaugurating the One Day Workshop on "An Overview on Asset & Liability Products"

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Workshop on Sales Tax

A workshop on Sales Tax on Services Act, 2011 was organized by the Association and conducted by Mr. Adnan Mufti, Partner of Shekha & Mufti, Chartered Accountants on September 19, 2011. 25 participants from Modarabas & Leasing Companies attended the workshop.

Mr. Abdul Ghaffar Umer inaugurating the workshop. Mr. Muhammad Samiullah and Mr. Adnan Mufti are also seen in the picture

Mr. Adnan Mufti, Partner, Shekha & Mufti conducting the Workshop on "Sales Tax on Services" Mr. Basheer A. Chowdry, Mrs. Arjumand A. Qazi and Mr. Muhammad Samiullah are also seen in the picture

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Year Book 2011

Two Days Seminar for Senior Management

The NBFI & Modaraba Association of Pakistan organized a two days seminar for senior management on 15th and 16th March, 2012 at the Auditorium of the Association. The topic of the seminar was "Shariah Compliance and Shariah Audit Mechansim". The seminar was specially attended by Mr. Jawed Hussain, Registrar Modaraba, Mr. Imran Hussain Minhas, Joint Registrar and other three senior Executives of SECP. Nineteen participants from different Modarabas and Leasing companies attended the seminar. Prominent Speakers from Darul Uloom, Mufti Irshad Ahmed Aijaz, Shariah Advisor, Bank Islami Pakistan, Mufti Muhammad Najeeb Khan, Shariah Advisor, Habib Metropolitan Bank Limited, Mufti Abdul Sattar Laghari, Shariah Advisor, National bank of Pakistan & Shariah Advisor of NBFI & Modaraba Association of Pakistan and Mr. Omar Mustafa Ansari, Head of Islamic Financial Services Group, Ernst & Young Ford Rhodes Sidat Hyder, conducted the Seminar. Mr. Imran Hussain Minhas, Joint Registrar Modaraba also gave a presentation on Shariah Compliance and its importance. Mr. Basheer A. Chowdry, Chairman, NBFI & MAP, highlighted the potential of the Modaraba sector. Mr. Jawed Hussain, Registrar Modaraba summed up the proceedings of two days seminar and finally distributed the Certificates to the participants.

Mufti Abdul Sattar Laghari addressing the Seminar, Mr. Murtaza Ahmed Ali, Mr. Basheer A. Chowdry, Mr. Muhammad Samiullah are also seen in the picture

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L-R Mr. Imran Hussain Minhas, Mr. Javed Hussain, Mr. Basheer A. Chowdry, Mr. Wajid Wahidi, Mr. Omar Mustafa Ansari

Mr. Basheer A. Chowdry, addressing the participants of the Seminar

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Year Book 2011

Four Days Workshop on "Shariah Compliance & Shariah Audit Mechanism" at Lahore
Reported by: Mr. Khaqan Hasnain Ibrahim Chief Executive, First Punjab Modaraba
Consequent upon the issuance of Shariah Compliance and Shariah Audit Mechanism ( SCASM) by SECP, the NBFI and Modaraba Association of Pakistan took upon itself the task of ensuring that requisite training was imparted to the relevant personnel throughout the length and breadth of the Modaraba sector.

Participants of the Workshop. Mr. Shahid Mahmood, Joint Registrar Modaraba, Securities Exchange Commission of Pakistan and Mufti Abdullah Najeeb also seen in the picture

Following its successful training program in Karachi, staggered over the months between December, 2011 and February, 2012, the Association undertook a power-packed, intensive course on "Shariah Compliance and Shariah Audit Regulations" in Lahore from February 27 to March 01,2012 for the benefit of its members located there. This course was organized under the aegis of Centre for Islamic Economics, a Division of Jamia Darul Uloom, Karachi. Those who conducted this course included some of the most eminent names in the industry who flew in from Karachi namely, Dr. Muhammad Zubair Usmani, Mufti Abdul Sattar Laghari, Mufti Irshad Ahmed Aijaz, Mufti Abdullah Najeeb, Mufti Iftikhar Baig, Dr. Zeeshan of LUMS, Mufti yahya Asim and Mufti Hassan Kaleem.

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Dr. Zeeshan of Lahore University of Management Science, conducting the Workshop

In all, there were fifteen participants in the course, four from First Punjab Modaraba, two each from National Bank Modaraba, IBL Modaraba, Trust Modaraba, Treet Modaraba, First Elite Capital Modaraba and one from BF Modaraba, Karachi. Mr. Muhammad Samiullah, Secretary General of the Association organized the workshop and personally attended the inaugural ceremony at Lahore. The feedback from the participants was very positive in as much as they felt that the coverage of the course was extensive while the quality of instructions was intensive. Mr. Shahid Mahmood, Joint Director, SECP specially came over from Islamabad and made an elaborate presentation highlighting the significance of this initiative from SECP, which he said will surely have a salutary impact on the standing of the Modarabas amongst all the stakeholders in the entire Islamic financial sector in the country. The Association acknowledges the role of the First Punjab Modaraba in playing the host and making commendable arrangements for this course. Special thanks are also due to its CEO, Mr. Khaqan H. Ibrahim whose initiative, personal interest and active participation throughout the course contributed to its outstanding success.

Mr. Khaqan Hasnain Ibrahim, CEO, First Punjab Modaraba addressing the participants of the workshop

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Year Book 2011

Intensive Workshop on "Shariah Compliance & Shariah Audit Mechnism" Organised at the Auditorium of the Association at Karachi
In order to implement the "Shariah Compliance and Shariah Audit Mechanism" guidelines issued by SECP for Modarabas and strengthen the working of Modarabas to make them fully Shariah Compliant, the Association arranged a detailed workshop for the staff of Modarabas with effect from 13th December, 2011 to 8th February, 2012 in which 18 half day sessions were held. This program was organized in coordination with the Centre of Islamic Economics (CIE) and eminent Scholars from Jamia Darul Uloom, Korangi conducted the Workshop. Fifteen staff members from different Modarabas participated in the workshop. The course outlines of the workshop were designed on the pattern of PGD (Post Graduate Diploma) Course conducted by CIE.

L-R. Mr. Muhammad Samiullah, Mufti Abdul Sattar Laghari, Mr. Basheer A. Chowdry, Maulana Azizur Rehman and Mr. Abdul Ghaffar Umer

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Participants and Management of the Workshop

Maulana Azizur Rehman conducting the Workshop

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Year Book 2011

FIRST HABIB MODARABA Best Corporate Report Award from ICAP / ICMAP
The Joint Committee of ICAP / ICMAP has selected annual report of First Habib Modaraba for the year ended 30th June, 2010, as a best corporate report and given "Best Corporate Award" under the category of Non-Banking Financial Institutions (NBFI) comprising of Insurance, Leasing, Investment Banks, Mutual Funds and Modarabas. This ceremony was held on November 11, 2011 at Karachi. Alhamdulillah, Habib Modaraba is the first Modaraba who has been awarded for Best Corporate Award for the last two consecutive years.

Mr. Muhammad Shoaib Ibrahim, Managing Director & CEO, First Habib Modaraba is receiving "Best Corporate Award" from Joint Committee of ICAP & ICMAP on the occasion of 11th Best Corporate Award - 2010"

Brand of the Year Award

First Habib Modaraba received "Brand of the Year" Award of 2010 from the Brands Foundation of Pakistan. This award was given in the category of Non Banking Financial Institutions. The award ceremony was held on 30th July 2011 at Governor's House, Karachi.

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FIRST HABIB MODARABA SAFA "Certificate of Merit Award"

South Asian Federation of Accountants (SAFA) in its Award Ceremony held in Dhaka Bangladesh, on 29th November 2011, awarded a "Certificate of Merit Award" to First Habib Modaraba for "Best Presented Accounts" and "Corporate Governance Disclosures" for the year 2010. This award has been given from the category of Non Banking Financial Sector. Within this sector there were only two nominees from Pakistan and First Habib Modaraba was one of them. This is the second consecutive "Certificate of Merit" award to Habib Modaraba from SAFA Committee. SAFA is an Apex Body of SAARC. This body represents member of the Chartered Accountancy and Management Accountancy Institutions in the South Asian countries namely Bangladesh, India, Nepal, Pakistan and Sri Lanka.
Mr. Muhammad Shoaib Ibrahim, Managing Director & CEO, First Habib Modaraba is receiving "Certificate of Merit" award from Commerce Minister Bangladesh, Muhammad Faruk Khan

Credit Ratings
The Pakistan Credit Rating Agency (PACRA) has maintained the long-term and short-term rating of First Habib Modaraba (FHM) at "AA+" (Double A plus) and "A1+" (A One Plus), respectively. These ratings denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments. The ratings denote FHM's sound risk absorption capacity emanating from an equity dominated financial structure and sustained profitability despite continuing volatile economic conditions. Moreover, the Modaraba has a strong liquidity profile, as reflected in its sizable investment book, yielding a stable earning stream. FHM's risk-averse business strategy has enabled the Modaraba to maintain very strong assets quality despite continuing volatile economic conditions. Ijarah financing continues to remain FHM's strong forte, though the Management is working to diversify its financing portfolio by tapping hitherto unexplored potential areas of business.

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Year Book 2011

Macro Perspective

Macro Perspective
The following sections contain a description of the overall size of Leasing and Modaraba sector in Pakistan and its performance during the years.

Trends of Aggregate Indicators

The trends of industrys aggregate indicators for the year are given below:Leasing Companies (All figures are in Rs. Million) 2009 No of Companies Paid-up Capital Reserves Total Equity Investment in Lease Finance Investments Borrowings Revenues Operating Expenditure Financial Charges Taxation Net Profit Cash Dividend Total Assets 14 8,842 (1,068) 7,774 50,737 8,135 50,892 8,014 4,478 7,033 (377) (3,633) 76,165 2010 12 5,928 145 6,072 31,716 5,010 27,068 5,743 3,314 3,891 (419) (1,042) 13 46,672 2011 13 8,751 3,256 5,969 29,270 6,931 25,590 5,297 1,874 3,192 914 (348) 146 44,461

Figures include 10 leasing companies and 3 investment banks. The number of companies and the paid up capital are the Industrys input parameters whereas revenues, profits, financial charges and investments are the output parameters indicating the extent of the benefits provided by the industry to the lessors, shareholders etc. A graphic view of the Leasing Companies is given below:-

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Year Book 2011

Modarabas Key aggregate indicators of 26 Modarabas are presented below:(All figures are in Rs. Million) 2009 No of Companies Paid up Capital Reserves Total Equity Investment in Lease Finance Investments Borrowings Revenues Operating Expenditure Financial Charges Taxation Net Profit Cash Dividend Total Assets 25 8,439 2,400 10,839 10,101 1,908 9,365 6,202 4,916 1,431 13 (158) 456 23,087 2010 26 8,439 3,050 11,489 7,575 2,905 7,989 7,436 5,366 1,270 19 781 580 24,469 2011 26 8,746 3,675 12,422 8,968 3,106 9,296 8,055 5,342 1,257 31 1,128 772 26,343

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A graphic view of the Modarabas is given below:-

Consolidated Trends of Aggregate Indicators 2009 No of Companies Paid up Capital Reserves Total Equity Investment in Lease Finance Investments Borrowings Revenues Operating Expenditure Financial Charges Taxation Net Profit Cash Dividend Total Assets 39 17,281 1,332 18,613 60,838 10,043 60,257 14,216 9,394 8,464 (364) (3,791) 456 99,252

(All figures are in Rs. Million) 2010 38 14,367 3,195 17,562 39,291 7,915 35,057 13,179 8,680 5,161 (400) (261) 593 71,141 2011 39 17,497 6,931 18,391 38,238 10,037 34,886 13,352 7,216 4,449 945 779 918 70,804

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Year Book 2011

Trends of Key Ratios

Leasing Companies The following tables show the key ratios of the leasing companies:2009 Earning per Share (Rs.) Return on Equity (%) Return on Assets (%) Capital Ratio (X) Leverage Ratio (X) Current Ratio (X) Investment in lease finance (%) Book value per Share (Rs.) Time Interest Earned (X) Total Assets / Net Worth (X) Financial Charges / Total Expanses (%) Dividend per share (Rs.) (4.11) (46.74) (4.77) 0.07 7.29 1.28 34.22 9.06 0.65 9.80 58.51 (All figures are in Rs. Million) 2010 (1.76) (17.17) (2.23) 0.15 5.61 1.20 32.36 9.69 (1.48) 7.69 54.01 0.02 2011 (0.40) (5.84) (0.78) 0.16 5.42 1.08 30.78 5.81 1.23 7.45 61.13 0.17

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Modarabas Key Ratios of 26 Modarabas are presented below:(All figures are in Rs. Million) 2009 Earning per Certificate (Rs.) Return on Equity (%) Return on Assets (%) Capital Ratio (X) Leverage Ratio (X) Current Ratio (X) Investment in lease finance (%) Book value per certificate (Rs.) Time Interest Earned (X) Total Assets / Net Worth (X) Financial Charges / Total Expanses (%) Dividend per certificate (Rs.) (0.19) (1.45) (0.68) 17.74 1.13 1.24 43.75 12.84 1.69 2.13 25.72 0.55 2010 0.93 6.80 3.19 0.47 1.02 1.21 25.77 8.81 1.64 2.13 19.14 0.69 2011 1.29 9.08 4.28 0.50 1.01 1.11 30.81 9.21 1.95 2.12 18.29 0.88

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Consolidated Trends of Key Ratios 2009 Earning per Share / Certificate (Rs.) Return on Equity (%) Return on Assets (%) Capital Ratio (X) Leverage Ratio (X) Current Ratio (X) Investment in lease finance (%) Book value per Share / Certificate (Rs.) Time Interest Earned (X) Total Assets / Net Worth (X) Financial Charges / Total Expanses (%) Dividend per share / certificate (Rs.) (2.19) (20.37) (3.82) 0.18 3.65 1.27 36.44 8.23 0.69 5.33 48.14 0.26

(All figures are in Rs. Million) 2010 (0.18) (1.49) (0.37) 0.27 2.61 1.21 30.09 9.17 (0.71) 4.05 37.29 0.41 2011 0.44 4.23 1.09 0.29 2.44 1.09 30.79 7.51 1.43 3.85 35.67 0.52

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Statistical over view of Leasing / Modaraba Sector in Pakistan

Year wise Lease Disbursement
Rs. in million

2009 22,074 6,069

2010 19,323 6,954

2011 15,184 4,008

Total Lease Disbursement

SME Lease contribution

Investment in Lease (Assets Wise) 2010-2011

Plant & Machinery Vehicles (Private) Vehicles (Comm.) Equipments Others Total Rs. in million 17,266.24 14,136.08 7,770.11 1,559.37 668.23 41,400.03 % 41.71 34.15 18.77 3.77 1.60 100.00

Consolidated Sector wise Exposure of Leasing / Modaraba Sector in 2010-2011

Rs. in million % Auto & Allied 6,848.62 14.19 Chemical, Fertilizers & Pharmaceutical 2,863.17 5.93 Construction 2,040.13 4.23 Energy, Fuel, Oil & Gas 2,714.11 5.62 Engineering & Allied 1,860.08 3.85 Food, Tobacco & Beverages 3,198.41 6.62 Services 3,378.72 7.00 Sugar 2,108.83 4.37 Textile 5,722.55 11.85 Transport & Communication 4,814.62 9.97 Others 12,730.45 26.37 Total 48,279.69 100.00

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Year Book 2011

Members at a Glance

Members at a Glance
30th June, 2011 S. No. 1 2 3 4 5 6 7 8 9 10 Name of the Company Capital Assets Leasing Corporation Limited Grays Leasing Limited NBP Leasing Limited ORIX Leasing Pakistan Limited Pak-Gulf Leasing Company Limited Saudi Pak Leasing Company Limited Security Leasing Corporation Limited Sigma Leasing Corporation Limited SME Leasing Limited Standard Chartered Leasing Limited TOTAL (A) 1 2 3 First Dawood Investment Bank Limited Invest Capital Investment Bank Limited Trust Investment Bank Limited TOTAL (B) TOTAL (A + B) Total Assets 111.30 388.00 790.22 21,802.21 816.04 3,162.32 1,836.51 511.58 989.64 3,263.88 33,671.70 1,824.89 3,583.98 5,380.64 10,789.51 44,461.21 Total Equity (Figures in million) Investment in Net Profit/ Earning Per Dividend Lease Finance (Loss) Share % 10.12 358.00 449.00 16,435.09 713.22 2,035.28 1,249.43 200.95 843.01 2,938.45 25,232.55 983.06 812.25 2,242.10 4,037.71 29,270.26 41.75 (44.17) 52.25 144.67 15.52 (117.68) (24.78) 21.08 (49.79) 76.27 115.12 (44.02) (586.25) 166.36 (463.91) (348.80) 3.89 (2.05) 1.04 1.76 0.61 (2.61) (0.68) 0.70 (1.56) 0.78 (1.16) (1.54) 2.12 5.00 10.00 5.00 5.00 -

98.92 75.43 655.99 2,247.70 406.01 117.32 131.83 333.01 303.66 851.12 5,220.99 591.14 (370.75) 528.47 748.66 5,969.66

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26

Allied Rental Modaraba B. F. Modaraba B.R.R. Guardian Modaraba Crescent Standard Modaraba First Al-Noor Modaraba First Constellation Modaraba First Elite Capital Modaraba First Equity Modaraba First Fidelity Leasing Modaraba First Habib Bank Modaraba First Habib Modaraba First IBL Modaraba First Imrooz Modaraba First National Bank Modaraba First Pak Modaraba First Paramount Modaraba First Prudential Modaraba First Punjab Modaraba First Treet Manufacturing Modaraba First Tri-Star Modaraba First UDL Modaraba KASB Modaraba Modaraba Al-Mali Standard Chartered Modaraba Trust Modaraba Unicap Modaraba TOTAL GRAND TOTAL

2,110.80 132.44 2,966.79 148.24 349.43 73.98 168.14 613.00 375.23 809.61 4,075.58 283.30 316.39 2,167.00 81.93 245.43 572.12 2,628.35 1,428.64 267.47 659.93 1,113.87 213.05 4,161.11 377.21 3.15 26,342.19 70,803.40

1,302.95 127.50 732.68 117.55 326.14 69.59 124.04 563.00 335.19 677.07 3,059.00 233.17 116.95 337.00 75.98 144.00 513.00 296.47 878.19 189.31 494.66 307.64 178.89 938.07 283.39 (0.17) 12,421.26 18,390.92

603.64 14.55 128.98 25.86 24.89 93.11 16.65 24.30 519.77 2,372.90 15.85 289.00 1.69 66.19 1,239.94 141.98 7.33 6.46 3,324.49 50.32 8,967.81 38,238.07

288.29 17.49 41.70 5.02 29.89 2.40 8.81 0.18 8.68 71.56 277.92 (8.78) 27.57 30.59 13.43 27.79 33.27 (70.18) 123.23 (1.53) 72.96 40.14 (20.15) 86.61 21.02 (0.36) 1,127.55 778.76

4.80 2.33 0.53 0.25 1.42 0.37 0.78 0.00 0.33 1.80 1.38 (0.44) 9.20 1.22 1.07 4.74 0.38 (2.06) 1.70 (0.07) 2.77 1.42 (1.09) 1.91 0.71 (0.03)

23.00 15.00 2.50 1.20 8.00 5.50 13.00 22.00 73.50 10.00 4.00 23.50 3.00 6.94 17.50 6.40 17.25 -

Top Ten Modarabas

BIGGEST
BY EQUITY
Rank 1 2 3 4 5 6 7 8 9 10 Name of Modaraba First Habib Modaraba Allied Rental Modaraba Standard Chartered Modaraba First Treet Manufacturing Modaraba BRR Guardian Modaraba First Habib Bank Modaraba First Equity Modaraba First Prudential Modaraba First UDL Modaraba First National Bank Modaraba Rs. (million) 3,059 1,302 938 878 732 677 563 513 495 337

SECTOR PROFILE AS ON 30TH JUNE 2011 TOP TEN MODARABAS

BEST INVESTMENT
BY DIVIDEND
Rank 1 2 3 4 5 6 7 Name of Modaraba% First Imrooz Modaraba Allied Rental Modaraba First Paramount Modaraba First Habib Modaraba First UDL Modaraba Standard Chartered Modaraba First Habib Bank Modaraba First National Bank Modaraba First Al-Noor Modaraba First Treet Manufacturing Modaraba % 73.50 25.00 23.50 22.00 17.50 17.25 13.00 10.00 8.00 6.94 Rs.(million) 22.05 138.00 13.78 221.76 46.18 78.29 51.62 25.00 16.80 55.52

BY ASSETS
Rank 1 2 3 4 5 7 8 9 10 Name of Modaraba Standarad Chartered Modaraba First Habib Modaraba BRR Guardian Modaraba First Punjab Modaraba First National Bank Modaraba Allied Rental Modaraba First Treet Manufacturing Modaraba KASB Modaraba First Habib Bank Modaraba First UDL Modaraba Rs. (million) 4,161 4,075 2,967 2,628 2,167 2,111 1,429 1,114 810 660

8 9 10

BY EARNING PER CERTIFICATE

Rank 1 2 3 4 5 6 7 8 9(A) 9(B) 10 Name of Modaraba First Imrooz Modaraba Allied Rental Modaraba First Paramount Modaraba First UDL Modaraba BF Modaraba Standard Chartered Modaraba First Habib Bank Modaraba First Treet Manufacturing Modaraba KASB Modaraba First Al-Noor Modaraba First Habib Modaraba Rs. 9.19 4.80 4.74 2.77 2.33 1.91 1.80 1.70 1.42 1.42 1.38

BY PROFIT
Rank 1 2 3 4 5 6 7 8 9 10 Name of Modaraba Allied Rental Modaraba First Habib Modaraba First Treet Manufacturing Modaraba Standard Chartered Modaraba First UDL Modaraba First Habib Bank Modaraba BRR Guardian Modaraba KASB Modaraba First Prudential Modaraba First National Bank Modaraba Rs. (million) 288 278 123 86 73 71 42 40 33 31

Company Profile

Allied Rental Modaraba

Mr. Murtaza Ahmed Ali Chief Executive

Board of Directors Khwaja Asif Rahman Chairman Mr. Murtaza Ahmed Ali CEO Syed Feisal Ali Director Mr. Raees A. Khan Director Mr. Ali Akbar Director Mr. Tajdar A. Shah Director Mr. Hasan Shehzad Abidi Director

History, Background, Principal Activities etc.

Allied Rental Modaraba is a multipurpose and perpetual Modaraba formed under the Modaraba Companies & Modarabas (Floatatation and Control) Ordinance, 1980 and the rules framed thereunder. It is managed by Allied Engineering Management Company (Pvt.) Ltd., a wholly owned subsidiary of Allied engineering and Services Ltd. The main sponsors of the Modaraba Allied Engineering and Services Ltd. are the sole dealers and distributors of Caterpillar Equipments in Pakistan for over 30 years. The Modaraba commenced its business operations on January 10, 2007 with the equity of Rs. 300 million. The primary business of Allied Rental Modaraba is the rental business of specialized equipments such as power generation equipment, construction equipment, material handling equipment and related machinery and logistics equipments. The Modaraba provides equipments on rental across Pakistan through the facilities of its sponsors located in Karachi, Lahore, Islamabad, Multan, Faisalabad, Peshawar and Quetta. The business model of Allied Rental Modaraba is IJARAH in Islamic terminology, where an equipment is provided to customer on rent for any period ranging from days, weeks, months or year and all costs related to installation, operation and maintenance except fuel is borne by Modaraba. The main business of the Modaraba is to sell equipment utilization (usufruct) and related services rather than the equipment itself. Another ancilliary business line of the Modaraba is to provide outsourcing solution to its customers for operating and maintaing power plants owned by customers for round the clock operations with professional excellence.

Performance Highlights (2010-2011)

The Management is pleased to report that the Modaraba touched new heights of growth and achieved sales revenue of over Rs. ONE BILLION, compared to Rs 829 million of corresponding period last year, increase of 25%, consistent double digit growth recorded since its floatation in 2007. The overall asset size of the Modaraba also touched a new peak of Rs 2.1 Billion, three times the size of Rs 707 million in June 2007. The NET WORTH of the Modaraba now stands at Rs 1.3 Billion compared to Rs 358 million in June 2007. The Breakup Value of the Modaraba certificate now stands at Rs 21.72. This growth in the NET WORTH of the Modaraba was made possible by reinvesting the profits in the business by retaining maximum profits for expansion and growth of Rental Assets, despite consistent double digit dividend payments since its floatation. The profit also jumped to Rs. 288 million as against Rs. 278 million earned during last year. The profit remained depressed, despite 25% growth in sales, due to Rs 81 million charges of Ijarah rentals charged to Profit and Loss Account under IFAS -2. The depreciation charge also went up from Rs 142 million in previous year to Rs 200 million in the current year. The charge for Staff costs went up by 25% in line with growth of Rental business; however due to strong monitoring and control staff costs remained under control despite inflationary pressures. The financial charges also registered an increase of 67% from Rs 21 million in the previous years to Rs 35 million in the current year. For the year ended June 30, 2011, the Board has also announced a cash dividend of 23% i.e. Rs. 2.3/- per Certificate and bonus certificate issue of 25% i.e. one share for every four shares (1:4) held.

84

Year Book 2011

Balance Sheet
30th June Reporting Period (Months) EQUITY Issued,subs.& Paid-up-Capital Reserve & Retained Earning Total Equity LIABILITIES Deferred Liabilities Long Term Loan Certificate of Investment Lease Key Money Total Non-current Liabilities Current Maturity of L.T. Loan S.T. Loan & Running Finance S.T. Certificate of Investment Other Current Liabilities Total Current Liabilities Total Liabilities Total Equity and Liabilities ASSETS Tangible Fixed Assets Net Investment in Lease Finance Long Term Investment Other Long Term Assets Total Non-current Assets Current Portion of Lease Finance Short-term Finance Investments Other Current Assets Cash & Bank Balances Total Current Assets Total Assets SIGNIFICANT RATIOS Net working Capital (Rs.) Capital Ratio (x) Gearing (X) Leverage Ratio (X) Current Ratio (X) Total Assets / Net Worth (X) Total Financing / Net Worth (X) Break-up Value (Rs.) Investment in Lease Finance (%) (20.69) 75.55 22.90 0.20 0.90 1.32 0.14 16.03 10.32 (111.00) 76.00 18.26 0.31 0.65 1.31 18.26 19.17 6.00 (429.61) 0.63 0.17 0.59 0.43 0.17 0.17 21.72 4.00 980.38 83.64 26.13 1,090.15 47.66 100.07 34.98 182.71 1,272.86 1,220.00 69.00 17.00 1,306.00 16.00 101.00 88.00 205.00 1,511.00 1,266.72 597.41 18.21 1,882.34 6.23 160.74 61.49 228.46 2,110.80 7.86 98.73 1.19 107.78 121.45 81.95 203.40 311.18 1,272.86 14.00 31.00 45.00 179.00 137.00 316.00 361.00 1,511.00 17.46 97.05 35.28 149.78 125.78 532.29 658.07 807.85 2,110.80 2009 12 600.00 361.68 961.68 2010 12 600.00 550.00 1,150.00 2011 12 600.00 702.95 1,302.95 (Rupees in Millions)

Balance Sheet Growth

Rs. in million Rs. in million

Equity Growth
1400 1200 1000

2500 2000 1500 1000 500 0

800 600 400 200 2009 2010 2011 0 2009 2010 2011

Investment in Lease
Rs. in million 700 600 500 400 300 200 100 0

Cost Analysis (2010-11)

Plant & Machinery Vehicles-Private Vehicles-Commer. Equipments Other

%
Operating expenses Financial expenses

95.45 4.55

Revenue Analysis (2010-11)

Sector Wise Exposure (2010-11)

%
0.90 Auto & Allied 3.30 Cement Chemical, Fertilizers & Pharmaceutical 3.00 Construction 3.60 Consumer Facilities 5.50 Diary & Poultry 0.60 Education 0.30 Energy, Fuel, Oil & Gas13.10 Engineering & Allied 1.80 Financial Sector 1.20 Food, Tobacco & Beverage 13.20 Health Care 2.70 Services 3.20 Textile 30.50 Transport & Communication 2.40 Others 14.70

Lease Income 98.41 Mark-up Income 0.60 Other income 0.99

Income Statement
30th June Reporting Period (Months) INCOME Lease income Mark-up income Capital gain on Investment Non Interest Income Other income Total Income EXPENSES Operating Expenses Financial Expenses Prov. for Pot. Lease Losses/ Loan Prov. for Dimn. in value of Investment Total Expenses Profit Before Taxation Taxation Net Profit APPROPRIATION Dividend Reserve for Bonus Shares Statutory Reserve Other Reserve SIGNIFICANT RATIOS Book value per share (Rs.) Financial Charges / Total Expenses (%) Times interest earned (X) Earning per share (Rs.) Return on equity (%) Return on Assets (%) Debt Equity Ratio (%) Dividend Per Certificate (Rs.) Stock Dividend (%) 16.03 9.17 5.05 3.6 24.86 16.00 22.90 1.50 19.16 4.00 13.00 4.63 26.00 20.00 18.00 2.25 21.72 4.76 932.00 4.80 24.00 15.92 15.00 2.30 2.50 90.00 88.07 (1.93) 135.00 139.00 138.00 150.00 144.15 430.38 43.46 473.84 176.14 176.14 558.00 21.00 579.00 278.00 278.00 727.53 34.64 762.17 288.29 288.29 2009 12 2010 12 2011 12 (Rupees in Millions) 479.19 829.00 1,033.74 8.00 6.34 170.79 20.00 10.39 649.98 857.00 1,050.47

The Allied Rental Modaraba Team

Mr. Murtaza Ahmed Ali
Chief Executive Officer Chief Financial Officer

Mr. Ilyas Asif

Mr. Naveed Shaheen Mr. Hazoor Bux Memon Mr. Rashid Jhangiri
General Manager Operations South General Manager Operations - North

Internal Auditor & Secretary to Audit Commitee

Mr. Hammad Iftikhar Mr. Raghib Waqas

Regional Sales Manager - North Regional Sales Manager - South

Commenced Business on : 10-01-2007 Head Office

Company Information

: 21/3, Sector 22, Korangi Industrial Area, Karachi 74900 : UAN 111-250-250 : 35066915, 35066916 : rental@aesl.com.pk : www.arm.com.pk : Lahore - Islamabad - Multan Faisalabad - Peshawar : 225 : Karachi Stock Exchange : KPMG Taseer Hadi & Co. : Mr. Khalil Ahmed Siddiqui, Advocate

Tel Fax Email Website Offices at Staff Strength Listed at Auditors Legal Advisors

Year Book 2011

85

B.F Modaraba
Mr. Muhammad Omar Amin Bawany Chief Executive

Board of Directors Mr. Ahmed Ali Mohammad Amin Bawany Chairman Mr. Mohammad Omar Amin Bawany CEO Mr. Abdul Ghani Abdul Samad Director Mr. Abdul Wahid Jaliawalla Director

History, Background, Principal Activities etc.

B. F. Modaraba managed by E. A. Management (Private) Limited was established in 1989 as a perpetual multi purpose and multi dimensional Modaraba and is listed in all the Stock Exchanges of Pakistan. The initial subscribed and paid up fund was Rs 20.000 million, has increased to Rs 75.151 million through issuance of right certificate and stock dividend. The Modaraba activities are Leasing, which is covering the corporate enterprise to individuals entrepreneurs, long term and short term Morabaha and Musharika, equity market and investment operation, trading, rendering services and other mode which are not against the injunction of Islam. The Board of Directors of Management Company including the Chief Executive belongs to one of the oldest industrial group of the country. The Modaraba is a unit of Amin Bawany Group, which is a leading business group having interest in diversified businesses such as insurance, leasing, particle board, sugar, ethanol, construction and other important business sectors of Pakistan.

and this positive trend was reflected in our portfolio investment. Hence, unrealized gain in the value of investment in the marketable securities was Rs.15.552 million which has been reflected in the equity.

Performance Highlights (2010-2011)

By the Grace of Almighty Allah, your Modaraba delivered strong financial results. Gross revenue during the year were Rs.29.489 million vis-vis Rs.11.913 million for the corresponding period of 2010, a hefty growth of 147%, mainly due to tremendous increase in trading income which is 48% of the total revenue. However, revenue from dividend, capital gain, and bank deposit and lease rentals also improved. Administrative expenses for the year grew by 17%, an expected rise considering the factor of inflation and growing cost of carrying out business. Thus, Pre-tax Profit stood at Rs. 20.368 million against a Pre-tax Profit of Rs. 5.619 million for the corresponding period of 2009-10. Consequently, earning per share has jumped to Rs.2.33 from Rs.0.45. Equities market continued its upward march and during the year under review the KSE-100 index breached the psychological barrier of 12,000

86

Year Book 2011

Balance Sheet
30th June Reporting Period (Months) EQUITY Issued,subs.& Paid-up-Capital Reserve & Retained Earning Total Equity LIABILITIES Deferred Liabilities Long Term Loan Certificate of Investment Lease Key Money Total Non-current Liabilities Current Maturity of L.T. Loan S.T. Loan & Running Finance S.T. Certificate of Investment Other Current Liabilities Total Current Liabilities Total Liabilities Total Equity and Liabilities ASSETS Tangible Fixed Assets Net Investment in Lease Finance Long Term Investment Other Long Term Assets Total Non-current Assets Current Portion of Lease Finance Short-term Finance Investments Other Current Assets Cash & Bank Balances Total Current Assets Total Assets SIGNIFICANT RATIOS Net working Capital (Rs.) Capital Ratio (x) Gearing (X) Leverage Ratio (X) Current Ratio (X) Total Assets / Net Worth (X) Total Financing / Net Worth (X) Break-up Value (Rs.) Investment in Lease Finance (%) 90.53 0.91 0.09 11.63 1.09 13.41 0.60 101.49 0.97 2.30 47.28 1.02 14.96 0.40 115.54 0.96 1.65 61.65 1.04 16.97 11.00 2009 12 2010 12 2011 12 (Rupees in Millions) 68.32 68.32 75.15 23.30 33.90 52.35 91.62 102.22 127.50 0.08 0.08 0.16 8.52 8.52 8.68 100.30 0.59 0.61 0.04 1.24 38.22 45.35 15.49 99.06 100.30 0.16 0.08 0.24 2.19 2.19 2.44 104.66 0.47 0.45 0.04 0.97 11.48 37.73 46.45 8.00 103.68 104.66 0.25 2.78 3.03 1.91 1.91 4.93 132.44 0.39 14.56 0.04 14.99 34.96 64.84 17.64 117.44 132.44

Balance Sheet Growth

Rs. in million Rs. in million

Equity Growth
140 120 100 80 60 40 20

140 120 100 80 60 40 20 0 2009 2010 2011

2009

2010

2011

Investment in Lease
Rs. in million 16 14 12 10 8 6 4 2 0
Plant & Machinery Vehicles-Private Vehicles-Commer. Equipments Other

Cost Analysis (2010-11)

Operating Expenses Financial Expenses

91.18 8.82

Revenue Analysis (2010-11)

Sector Wise Exposure (2010-11)

Income Statement
30th June Reporting Period (Months) INCOME Ijarah income Mark-up income Capital gain/(loss) on Investment Trading Income Murabaha Income Dividend Income Other income Total Income EXPENSES Operating Expenses Financial Expenses Prov. for workers welfare fund Prov. for Dimn. in value of Investment Total Expenses Profit Before Taxation Taxation Net Profit APPROPRIATION Dividend Reserve for Bonus Shares Statutory Reserve Other Reserve SIGNIFICANT RATIOS Book value per share (Rs.) Financial Charges / Total Expenses (%) Times interest earned (X) Earning per share (Rs.) Return on equity (%) Return on Assets (%) Debt Equity Ratio (%) Dividend Per Certificate (Rs.) Stock Dividend (%) 3.14 0.24 4.03 7.41 7.06 3.38 3.68 4.76 1.10 13.47 12.10 0.54 4.02 0.14 0.09 3.30 0.18 3.00 6.48 5.43 2.03 3.40 1.02 15.03 9.43 0.50 3.32 0.11 0.02 9.12 9.12 20.37 2.89 17.49 11.72 6.12 17.00 21.37 2.33 13.72 0.22 0.04 1.50 2009 12 2010 12 2011 12 (Rupees in Millions) 0.22 0.22 5.82 1.74 2.19 3.50 (0.09) 1.94 9.09 6.28 14.02 0.68 1.21 1.74 2.80 1.71 2.63 0.18 14.47 11.91 29.49

Ijarah income Mark-up income Capital gain/(loss) on Investment Trading Income Murabaha Income Dividend Income Other income

% 19.75 11.88 6.58 47.57 4.11 9.50 0.61

Auto & Allied 0.80 Cement 0.30 Chemical, Fertilizers & Pharmaceutical 44.40 Energy, Fuel, Oil & Gas 26.80 Sugar 0.20 Textile 0.30 Transport & Communication 2.40 Others 24.80

The B.F. Modaraba Team

Mr. Muhammad Ayub CFO & Company Secretary

Commenced Business on : June 11, 1989 Head Office : 4th Floor, Bank House No.1, Habib Square, M. A. Jinnah Road, Karachi : (92-21) 111 786 878, 32413240 : (92-21) 32421010 : info@bfmodaraba.com.pk : www.bfmodaraba.com.pk : Nil : 7 : KSE, LSE & ISE : M/s. Rehman Sarfaraz Rahim Iqbal Rafiq & Co. : Abdul Ghaffar Advocate

Company Information

Tel Fax Email Website Offices at Staff Strength Listed at Auditors Legal Advisors

Year Book 2011

87

B.R.R. Guardian Modaraba

Mr. Ayaz Dawood Chief Executive Officer

Board of Directors Mr. Rafique Dawood Chairman Mr. Ayaz Dawood CEO Mr. Shahid Murtaza Director Mr. Farouq Habib Rahimtoola Director

History, Background, Principal Activities etc.

The Dawood family formed B.R.R Investments (Private) Limited (BRRI) in association with National Development Finance Corporation (NDFC). In April 1983 to promote investments in Pakistan through leasing. The Company was registered on August 7, 1984 as a Modaraba Management Company under the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980. The first lease was executed on 26 March, 1984. BRRI also manages Crescent Standard Modaraba (CSM) The Modaraba offers lease financing to corporate entities as well as creditworthy individuals. The Modaraba also provides Musharaka, Morabaha and Equity Investments to cater to the requirements of Trade & Industry. Futher prospects: The modaraba is in the final stage of constructuring a 19 story Builiding just off Chundrigar Road, which will be completed during the current year. This building will be an excellent addition to the Karachi Sky line. The Modaraba paid cash dividend of Rs 0.25 per share. This is the twenty Third dividend in the Modaraba's history.

88

Year Book 2011

Balance Sheet
30th June Reporting Period (Months) EQUITY Issued,subs.& Paid-up-Capital Reserve & Retained Earning Total Equity LIABILITIES Deferred Liabilities Long Term Loan Certificate of Investment Lease Key Money Total Non-current Liabilities Current Maturity of L.T. Loan S.T. Loan & Running Finance S.T. Certificate of Investment Other Current Liabilities Total Current Liabilities Total Liabilities Total Equity and Liabilities ASSETS Tangible Fixed Assets Net Investment in Lease Finance Long Term Investment Other Long Term Assets Total Non-current Assets Current Portion of Lease Finance Short-term Finance Investments Other Current Assets Cash & Bank Balances Total Current Assets Total Assets SIGNIFICANT RATIOS Net working Capital (Rs.) Capital Ratio (x) Gearing (X) Leverage Ratio (X) Current Ratio (X) Total Assets / Net Worth (X) Total Financing / Net Worth (X) Break-up Value (Rs.) Investment in Lease Finance (%) (76.30) 0.25 1.56 3.06 0.93 4.06 1.77 9.49 16.83 (234.31) 0.17 1.63 4.76 0.89 5.76 2.59 8.11 7.95 94.69 0.25 2.56 2.92 1.09 4.05 1.48 9.39 4.35 2009 12 2010 12 2011 12 (Rupees in Millions) 780.46 780.46 780.46 (40.04) (147.57) (47.78) 740.42 632.89 732.68 1,009.23 149.06 1,158.30 906.15 202.25 1,108.39 2,266.70 3,007.12 71.61 505.99 163.30 1,234.12 1,975.02 399.35 470.66 95.78 66.29 1,032.08 3,007.13 878.86 146.56 1,025.43 1,667.79 316.95 1,984.75 3,010.17 3,643.07 66.12 289.63 1,536.88 1,892.63 752.66 695.29 197.24 105.24 1,750.43 3,643.07 1,054.38 90.96 1,148.34 730.46 355.32 1,085.77 2,234.11 2,966.79 25.96 128.98 1,631.40 1,786.34 363.95 492.83 201.98 121.70 1,180.46 2,966.79

Balance Sheet Growth

Rs. in million

Equity Growth
Rs. in million 800

4000 3500 3000 2500 2000 1500 1000 500 0 2009 2010 2011

700 600 500 400 300 200 100 0 2009 2010 2011

Investment in Lease
Rs. in million
45000 40000 35000 30000 25000 20000 15000 10000 5000 0

Cost Analysis (2010-11)

Plant & Machinery Vehicles-Private Vehicles-Commer. Equipments Other

Operating expenses Financial expenses Amortisation of Lased Assets Impariment Loss

19.85 64.42 9.67 6.06

Revenue Analysis (2010-11)

Sector Wise Exposure (2010-11)

%

% 18.95 Lease Income Mark-up Income 1.75 Capital gain on Investment 11.03 Non interest income 62.52 Other income 5.75

Open-end mutual fund 1.31 Oil and Gas 16.15 Chemicals 19.72 Forestry and papers 0.33 Industrial metals and mining 2.11 Construction and materials 2.38 Industrial engineering 5.18 Industrial transportation 0.39 Automobile and parts 4.49 Food producers 20.79 Personal goods 9.96 Pharma and bio tech 5.24 Others 11.95

Income Statement
30th June Reporting Period (Months) INCOME Lease income Mark-up income Capital gain on Investment Non Interest Income Other income Total Income EXPENSES Operating Expenses Financial Expenses Amortisation of Leased Assets Imparirment Loss Total Expenses Provision for Dobt Rec Profit Before Taxation Taxation Net Profit APPROPRIATION Dividend Reserve for Bonus Shares Statutory Reserve Other Reserve SIGNIFICANT RATIOS Book value per share (Rs.) Financial Charges / Total Expenses (%) Times interest earned (X) Earning per share (Rs.) Return on equity (%) Return on Assets (%) Debt Equity Ratio (%) Dividend Per Certificate (Rs.) Stock Dividend (%) 99.11 318.46 300.48 91.20 809.25 (273.23) (502.75) (502.75) 9.49 39.35 (0.58) (6.44) (39.35) (13.37) 3.06 102.28 351.73 170.88 149.92 774.81 (17.85) (161.23) (161.23) 8.11 45.40 0.54 (2.07) (23.48) (4.85) 4.76 109.33 354.88 53.30 33.38 550.86 16.84 41.71 41.71 19.51 20.85 9.39 64.42 1.13 0.53 6.50 1.26 2.56 0.25 2009 12 2010 12 2011 12 (Rupees in Millions) 374.93 189.66 116.56 0.50 9.54 10.79 (17.02) 101.68 67.87 198.59 310.23 384.52 22.73 20.31 35.25 579.74 631.42 614.99

The B.R.R. Guardian Modaraba Team

Mr. Rafique Dawood
Chairman

Syed Tariq Masood

Chief Financial Officer Company Secretary

Mr. Ayaz Dawood

Chief Executive Director Director

Mr. Tahir Mehmood Mr. Asad Ali Sheikh Mr. Naseem Ahmed
General Manager North General Manager Marketing & Operations

Mr. Farouq Habib Rahimtoola Mr. Muhammad Shahid Murtaza

Commenced Business on : November 1985 Head Office : 1900-B, Saima Trade Towers, I.I. Chundrigar Road, Karachi.74000 : (92-21) 32271874-84, 37010960-65 & 37014641-4 : (92-21) 32271912 : brr@firstdawood.com : htt://www.firstdawood.com/csm : Lahore & Islamabad : 58 : Karachi Stock Exchange : Emst & Young Ford Rhodes Sidat Hyder : Rauf Ghaffar Law Associates, Karachi Malik & Malik, Lahore.

Company Information

Tel Fax Email Website Offices at Staff Strength Listed at Auditors Legal Advisors

Year Book 2011

89

Capital Assets Leasing Corporation limited

Mr. Saad Saeed Faruqui Chief Executive Officer

Board of Directors Muhammad Sajid Chairman Saad Saeed Faruqui CEO Syed Hasan Akbar Kazmi Director Syed Sajid Nasim Director Mr. Shahrukh Saeed Faruqui Director Mr. Mustafa Jafar Director Ms. Ayesha Qadri Director

History, Background, Principal Activities etc.

The Company was incorporated on April 1, 1992 as a public limited company. Its shares are quoted on all Stock Exchanges in Pakistan. The principal activity of the company is to carryout leasing business. The company has its registered office in Karachi and a branch office in Lahore.The Company is subsidiary of M/s Optimus Limited

Performance Highlights (2010-2011)

Since the new Management has taken over Management Control of the company, the performance of the company has been improved drastically due to better management of resources and by doing Car Rental Services which contributed positively towards earning. During the year the company transacted business worth Rupees 16.96 million as compared to the Rupees 5.38 million the corresponding period. The net investment in Finance lease stands at Rupees 10.11 million on June 30, 2011 against Rupees 18.63 million the last year. profit after tax for the period amounts to Rupees 41.7 Million as against loss in prior years. Company also declared dividend to the shareholders for the first time in past 5 years.

90

Year Book 2011

Balance Sheet
30th June Reporting Period (Months) EQUITY Issued, subs.& Paid-up-Capital Reserve & Retained Earning Total Equity LIABILITIES Deferred Liabilities Long Term Loans Lease Key Money Total Non-current Liabilities Current Maturity of L.T. Loan S.T. Loan & Running Finance Lease Key Money Other Current Liabilities Total Current Liabilities Total Liabilities Total Equity and Liabilities ASSETS Tangible Fixed Assets Net Investment in Lease Finance Long-term Investment Other Long-term Assets Total Non-current Assets Current Portion of Lease Finance Short Term Finance Investments Other Current Assets Cash & Bank Balances Total Current Assets Total Assets SIGNIFCANT RATIOS Net working capital (Rs.) Capital Ratio (X) Gearing Leverage Ratio (X) Current Ratio ( X ) Total Assets / Net worth ( X ) Total financing / Net worth ( X ) Break up Value ( Rs.) Investment in Lease Finance (%) (8.67) 0.94 0.51 0.06 2.44 1.51 0.96 8.85 54.03 (16.42) 0.90 0.39 0.11 1.08 1.39 0.32 5.40 23.15 3.72 0.97 0.13 0.03 2.12 1.13 0.10 9.21 9.09 1.19 14.40 0.45 19.14 35.18 63.22 13.51 30.19 1.54 108.46 143.64 55.44 0.52 0.53 56.49 18.09 4.89 0.95 23.93 80.42 54.93 30.16 85.09 10.12 15.56 0.54 26.21 111.30 4.11 4.11 4.05 38.80 1.60 44.45 48.57 143.64 0.14 0.14 15.64 6.61 22.25 22.39 80.42 9.69 2.69 12.38 12.38 111.30 2009 12 107.44 (12.37) 95.07 2010 12 107.44 (49.41) 58.03 2011 12 107.44 (8.53) 98.92 (Rupees in Millions)

Balance Sheet Growth

Rs. in million 180
160 140 120 100 80 60 40 20 0 2009 2010 2011
60 40 20 0 120 100 80

Equity Growth
Rs. in million

2009

2010

2011

Investment in Lease
Rs. in million
7 6 5 4 3 2 1 0

Cost Analysis (2010-11)

Plant & Machinery Vehicles-Private Vehicles-Commer. Equipments Other

Operating Expenses Prov. For Pot. Lease Losses/Loans
% 128.60 (28.60)

Revenue Analysis (2010-11)

Sector Wise Exposure (2010-11)

%
Electronics Food, Tobaco & Beverages Others

Lease Income Mark-up Income Other Income

4.13 0.12 7.43

2.91 30.90 43.95

Income from Vehicle Plying for Hire 88.32

Transport & Communication 22.24

Income Statement
30th June Reporting Period (Months) INCOME Lease income Income from Vehicle Plying for Hire Mark up Income Capital Gain on Investments Non Interest Income Other income Total Income EXPENSES Operating Expenses Financial Expenses Prov. For Pot. Lease Losses/Loans Prov. For Dimn. In Value of Invest. Total Expenses Profit before Taxation Taxation Net Profit / (Loss) APPROPRIATION Dividend Reserve for Bonus Shares Statutory Reserve Other Reserve SIGNIFICANT RATIOS Book Value per share (X) Financial charges / Total Exp. (%) Earning per share (X) Return on Equity (%) Return on Assts (%) Debt Equity Ratio (X) Dividend per share (%) Stock dividend (%)

The Capital Assets Leasing Corp. Ltd. Team

Mr. Saad Saeed Faruqui Managing Director & Chief Executive Officer Mr. Abdul Wajid Soherwardy CFO & Company Secretary Mr. Moiz Ali Chief Internal Auditor

2009 12 7.00 2.14 9.14 12.54 2.38 (3.05) 11.87 (2.73) (2.73) 8.85 20.07 (0.25) (2.87) (1.90) 51.08

2010 12 (0.94) 4.84 0.67 0.81 5.38 8.31 0.33 14.57 23.20 (17.82) 19.12 (36.94) 5.40 1.43 (3.44) (63.66) (45.93) 38.58

2011 12 0.70 14.98 0.02 1.26 16.96 6.16 (1.37) 4.79 12.18 29.57 41.75 9.21 0.04 3.89 42.21 37.51 12.51 0.05 5.00

(Rupees in Millions)

Commenced Business on Head Office

: April 01, 1992 : 14th Floor Chapal Plaza Hasrat Mohani Road, Karachi : 021-32431181-8 : 021-32465703, 32465718 : calcorp@optimus.com.pk : www.calcorp.com.pk : Karachi, Lahore : 7 : Karachi, Lahore and Islamabad Stock Exchanges : Baker Tilly Mehmood Idress Qamar, Chartered Accountants : Mohsin Tayebaly & Co. Advocates Hosain & Rahim Advocate & Corporate Consel

Company Information

Tel Fax Email Website Offices at Staff Strength Listed at Auditors Legal Advisors

Year Book 2011

91

Crescent Standard Modaraba

Mr. Ayaz Dawood Chief Executive

Board of Directors Mr. Rafique Dawood Chairman Mr. Ayaz Dawood CEO Mr. Shahid Murtaza Director Mr. Farouq Habib Rahimtoola Director

History, Background, Principal Activities etc.

The Modaraba was formed under the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980 (XXXI of 1980) and the Rules framed there under. Modaraba was managed by Financial Link Limited upto January 19, 2007 however vide order no. SC/M/RW/CSM2006-32 dated January 19, 2007 from Registrar Modaraba,Sceurities and Exchange Commission of Pakistan management of Modaraba was transferred to Providence Modaraba Limited with immediate effect. Subsequent to the year end, Providence Modaraba Limited merged in B.R.R. Investments (Private) Limited, and thereafter the Modaraba is under management of B.R.R. Investments (Private) Limited

Performance Highlights (2010-2011)

The Modaraba is perpetual and multipurpose. It is engaged in venture capital, trading, equity investment, musharaka/ morabaha financing arrangements and financial advisory services. The certificates of the Modaraba are quoted on Karachi Stock Exchange.The Modaraba paid cash dividend of Rs 0.12 per share. This is the Third dividend in the Modaraba's history.

92

Year Book 2011

Balance Sheet
30th June Reporting Period (Months) EQUITY Issued,subs.& Paid-up-Capital Reserve & Retained Earning Total Equity LIABILITIES Deferred Liabilities Long Term Loan Certificate of Investment Lease Key Money Total Non-current Liabilities Current Maturity of L.T. Loan S.T. Loan & Running Finance S.T. Certificate of Investment Other Current Liabilities Total Current Liabilities Total Liabilities Total Equity and Liabilities ASSETS Tangible Fixed Assets Net Investment in Lease Finance Long Term Investment Other Long Term Assets Total Non-current Assets Current Portion of Lease Finance Short-term Finance Investments Other Current Assets Cash & Bank Balances Total Current Assets Total Assets SIGNIFICANT RATIOS Net working Capital (Rs.) Capital Ratio (x) Gearing (X) Leverage Ratio (X) Current Ratio (X) Total Assets / Net Worth (X) Total Financing / Net Worth (X) Break-up Value (Rs.) Investment in Lease Finance (%)

Balance Sheet Growth

2009 12 200.00 (89.73) 110.27 22.45 0.72 23.18 23.18 133.45 6.50 55.23 55.23 16.49 133.45 133.45 110.28 0.83 1.21 5.75 1.21 5.51 2010 12 200.00 (84.97) 115.03 0.15 0.15 40.45 3.50 43.95 44.10 159.13 2.29 22.20 24.49 23.63 44.59 45.61 20.81 134.64 159.13 90.70 0.72 0.00 1.38 3.06 1.38 0.21 5.75 1.44 2011 12 200.00 (82.45) 117.55 6.18 6.18 22.45 2.06 24.51 30.69 148.24 25.85 25.64 51.51 8.43 22.85 44.81 20.65 96.73 148.24
Cement
Rs. in million Rs. in million

Equity Growth
140 120 100 80 60 40 20

180 160 140 120 100 80 60 40 20 0 2009 2010 2011

(Rupees in Millions)

2009

2010

2011

Investment in Lease
Rs. in million 18 16 14 12 10 8 6 4 2 0
Plant & Machinery Vehicles-Private Vehicles-Commer.

Cost Analysis (2010-11)

%
Equipments Other

Operating Expenses Financial Expenses Amortization on Ijarah Assets

47.47 17.24 35.29

Revenue Analysis (2010-11)

Sector Wise Exposure (2010-11)

%
0.09 0.63 18.97 33.34 10.40 36.57 Chemical Fertilizer & Pharmaceutical Energy Fuel Oil & Gas Services Sugar Others

72.22 0.79 0.05 0.26 3.95 1.25 0.51 5.88 17.45

%
Lease Income Mark-up Income Capital gain on Investment Non Interest Income
37.65 12.94 2.31 42.46 4.64

Income Statement
30th June Reporting Period (Months) INCOME Lease income Mark-up income Capital gain on Investment Non Interest Income Other income Total Income EXPENSES Operating Expenses Financial Expenses Amortization on Ijarah Assets Loss on remeasurement of Inv - HFT Impairment loss on AFS Total Expenses Profit Before Taxation Management Fee Taxation Net Profit APPROPRIATION Dividend Reserve for Bonus Shares Statutory Reserve Other Reserve SIGNIFICANT RATIOS Book value per share (Rs.) Financial Charges / Total Expenses (%) Times interest earned (X) Earning per share (Rs.) Return on equity (%) Return on Assets (%) Debt Equity Ratio (%) Dividend Per Certificate (Rs.) Stock Dividend (%)

The Crescent Standard Modaraba Team

Mr. Rafique Dawood
Chairman

Syed Tariq Masood

Chief Financial Officer Company Secretary

2009 12

2010 12

2011 12 6.34 2.18 0.39 7.15 0.78

(Rupees in Millions) 0.47 2.04 10.98 4.22 0.04 4.22 2.27 2.27 1.95 0.20 1.76 5.51 0.09 1.61 1.33 0.21 13.53 5.98 1.62 0.35 7.94 5.58 0.56 5.02 2.40 2.51 5.75 20.40 4.46 0.25 4.46 3.43 0.38 0.12

Mr. Ayaz Dawood

Chief Executive Director Director

Mr. Tahir Mehmood Mr. Asad Ali Sheikh Mr. Naseem Ahmed
General Manager North General Manager Marketing and Operatrion

Mr. Farouq Rahimtoola Mr. Muhammad Shahid Murtaza

16.84 5.34 1.94 3.96 5.59 0.55 5.03 2.40 2.51 5.88 17.23 3.89 0.25 4.47 3.44 0.25 0.12

Company Information

11.25

Commenced Business on : July 4, 1992 Head Office : 1900-B, Saima Trade Towers, I.I. Chundrigar Road, Karachi.74000 Tel : (92-21) 32271874-84 Fax : (92-21) 32271912 Email : csm@firstdawood.com Website : www.firstdawood.com/csm Offices at : Lahore Staff Strength : 4 Listed at : Karachi Stock Exchange Auditors : Emst & Young Ford Rhodes Sidat Hyder, Chartered Accountant Legal Advisors : Rauf Ghaffar Law Associates, Karachi Malik & Malik, Lahore.

Year Book 2011

93

First Al-Noor Modaraba

Mr. Jalaluddin Ahmed Chief Executive Officer

Board of Directors Mr. Ismail H. Zakaria Chairman Mr. Jalaluddin Ahmed CEO Mr. Yusuf Ayoob Director Mr. Suleman Ayoob Director Mr. Aziz Ayoob Director Mr. Zain Ayoob Director Mr. Zohair Zakaria Director

History, Background, Principal Activities etc.

First Al-Noor Modarba (FAM) is managed by Al-Noor Modaraba Management (Private) Limited. FAM commenced its business on November 2, 1992 as a specific purpose (trading) Modaraba and listed on the Karachi and Lahore Stock Exchanges. The FAM was converted into a multipurpose perpetual Modaraba in July, 1995 and is currently engaged in Islamic financing such as Musahrika, Murabaha, Musawamah and Ijarah. Further, it is also actively involved in Equity Investment and Trading activities.

Performance Highlights (2010-2011)

By the grace of Almighty Allah, the financial year ended June 30, 2011 reflected a phenomenal increase over the previous year. This performance also need to be applauded since it was achieved at a time when the country is still passing through an economic meltdown. The Modaraba earned a net profit of Rs. 29.892 million in the year ended June 30, 2011 as compared to Rs. 11.034 million in the corresponding period in the preceding year. This has given the management an oppurtunity to announce a fairly reasonable dividend of 8%. This is a vastly improved performance considering that the dividend distribution remained restricted to 5% in the previous year. CREDIT RATING Rating Short Term Medium / Long Term BBB A-3

Rating Agency JCR-VIS Credit Rating Company Ltd

94

Year Book 2011

Balance Sheet
30th June Reporting Period (Months) EQUITY Issued,subs.& Paid-up-Capital Reserve & Retained Earning Total Equity LIABILITIES Deferred Liabilities Long Term Loan Certificate of Investment Lease Key Money Total Non-current Liabilities Current Maturity of L.T. Loan S.T. Loan & Running Finance S.T. Certificate of Investment Other Current Liabilities Total Current Liabilities Total Liabilities Total Equity and Liabilities ASSETS Tangible Fixed Assets Net Investment in Lease Finance Long Term Investment Other Long Term Assets Total Non-current Assets Current Portion of Lease Finance Short-term Finance Investments Other Current Assets Cash & Bank Balances Total Current Assets Total Assets SIGNIFICANT RATIOS Net working Capital (Rs.) Capital Ratio (x) Gearing (X) Leverage Ratio (X) Current Ratio (X) Total Assets / Net Worth (X) Total Financing / Net Worth (X) Break-up Value (Rs.) Investment in Lease Finance (%) 169.27 0.85 0.08 0.05 14.72 209.70 13.32 14.83 240.40 0.95 0.08 0.05 18.78 306.87 14.61 3.37 259.66 0.95 0.07 0.05 18.59 326.14 15.53 7.12 42.06 44.72 29.30 3.85 119.93 94.48 11.24 51.41 24.48 181.61 301.54 43.34 11.16 18.60 3.85 76.95 18.88 154.48 25.29 43.88 11.40 253.92 330.87 34.94 15.45 20.77 3.85 75.01 9.45 113.00 37.69 64.01 50.28 274.42 349.43 1.65 7.850 9.50 12.34 12.34 21.84 301.54 2.26 8.22 10.48 13.52 13.52 24.00 330.87 2.40 8.53 10.93 14.76 14.76 23.29 349.43 2009 12 210.00 69.70 279.70 2010 12 210.00 96.87 306.87 2011 12 210.00 116.14 326.14 (Rupees in Millions)

Balance Sheet Growth

Rs. in million

Equity Growth
Rs. in million

400 350 300 250 200 150 100 50 0 2009 2010 2011

350 300 250 200 150 100 50 0 2009 2010 2011

Investment in Lease
Rs. in million 25 20 15 10 5 0
Plant & Machinery Vehicles-Private Vehicles-Commer. Equipments Other

Cost Analysis (2010-11)

Operating expenses Financial expenses

95.85 4.15

Revenue Analysis (2010-11)

Sector Wise Exposure (2010-11)

%
Cement Chemical & Pharmaceutical Energy & Fuel Food & Allied Industries Sugar & Allied Industries Textile Composite Transport & Communication Oil & Gas Companies insurance Fertilizers Trading Non-Banking Financial Instutition Commercial Banks Others
0.67 6.76 0.46 25.24 2.85 17.85 1.44 1.76 1.78 1.28 3.63 1.18 3.54 31.56

%
7.16 Lease Income 36.95 Mark-up Income Non Interest Income 34.55 21.34 Other Income

Income Statement
30th June Reporting Period (Months) INCOME Lease income Mark-up income Capital gain on Investment Non Interest Income Other income Total Income EXPENSES Operating Expenses Financial Expenses Prov. for Pot. Lease Losses/ Loan Prov. for Dimn. in value of Investment Total Expenses Profit Before Taxation Taxation Net Profit APPROPRIATION Dividend Reserve for Bonus Shares Statutory Reserve Other Reserve SIGNIFICANT RATIOS Book value per share (Rs.) Financial Charges / Total Expenses (%) Times interest earned (X) Earning per share (Rs.) Return on equity (%) Return on Assets (%) Debt Equity Ratio (%) Dividend Per Certificate (Rs.) Stock Dividend (%) 13.32 7.92 0.58 0.20 0.25 1.97 1.82 7.80 14.61 6.24 0.32 0.53 2.77 3.50 7.81 0.50 5.00 15.53 4.23 0.03 1.42 9.40 8.77 7.14 0.80 8.00 (0.84) (0.50) (10.50) (2.21) (0.70) (16.80) (11.96) (1.00) (10.66) (3.03) (24.60) (38.29) 5.52 (0.37) 5.15 (38.05) (3.48) (14.19) (55.72) 11.58 (0.55) 11.03 (22.88) (0.99) 0.45 30.65 (0.76) 29.89 2009 12 2010 12 2011 12 (Rupees in Millions) 5.13 28.14 3.59 18.50 19.76 18.50 1.80 3.24 4.02 15.15 12.75 17.29 3.23 3.41 10.68 43.81 67.30 54.07

The First Al-Noor Modaraba Team

Mr. Arshad Khan Durrani Chief Financial Officer Mr. Roofi Abdul Razzak Mr. Irfan Rasheed Chief Internal Auditor

G.M. Finance & Company Secretary

Commenced Business on : November 02, 1992 Head Office

Company Information

(23.42)

: 96-A, S.M.C.H. Society, Karachi. : (021) 3455 2943, 3455 8268 : (92-021) 3455 3137 : fam@cyber.net.pk : www.fanm.com.pk : Karachi, Lahore : 11 : Karachi & Lahore Stock Exchanges : Rahman Sarfaraz Rahim Iqbal Rafiq : --

Telephone Fax Email Website Offices at Staff Strength Listed at Auditors Legal Advisors

Year Book 2011

95

First Constellation Modaraba

Mr. Mohammad Yousuf Memon Chief Executive

Board of Directors Mohammad Yousuf Memon CEO Mohammad Zakaria Director R.A. Sattar Director Mohammad Zain Director

History, Background, Principal Activities etc.

Constellation Management Company (Private) Limited and First Constellation Modaraba were incorporated in 1990 and 1991 respectively under Modaraba Companies and Modaraba (Floatation and Control) Ordinance 1980 with the objective to enter into any business, investment and other transaction which are not repugnant to the injunction of Islam or involves element of Riba either directly or indirectly. As stated above, Modaraba commenced its operation in November 1991, with nominal investment in Morabaha/Musharika financing, later on, the Modaraba added stock/shares and leasing business into its operation, the emphasis of the Modaraba, at present is on veriety of permissible busiensses, in order to meet the objective of earning profit and enriching Certificate Holders.

Performance Highlights (2010-2011)

During the period under review, your Modaraba has performed satisfactorily, as evident from results, the afore-said revenue was attained to the tune of Rs.7,271,034/-, which is better than previous corresponding period revenue of Rs.6,457,073/-, while, other operating income this year was Rs.1,322,376/- as compared to other operating income of Rs.891,557/-) during corresponding previous year, both the operating income as well as operating income got better market conditions, hence, overall generation of revenue is rather satisfactory, however, expenses increase this year versus previous year is on account of legal costs attributable to recoveries, further endeavors are being made to achieve better results for the Modaraba in ensuing periods. Placements with one NBFC had turned into extended maturity, owing to change of Management, the foregoing aspect is fully known to all stakeholders and SECP, recovery for above placement is being followed through courts of law, thus provision, if any, shall be made subsequent to court decision in the matter.

96

Year Book 2011

Balance Sheet
30th June Reporting Period (Months) EQUITY Issued,subs.& Paid-up-Capital Reserve & Retained Earning Total Equity LIABILITIES Deferred Liabilities Long Term Loan Certificate of Investment Lease Key Money Total Non-current Liabilities Current Maturity of L.T. Loan S.T. Loan & Running Finance S.T. Certificate of Investment Other Current Liabilities Total Current Liabilities Total Liabilities Total Equity and Liabilities ASSETS Tangible Fixed Assets Net Investment in Lease Finance Long Term Investment Other Long Term Assets Total Non-current Assets Current Portion of Lease Finance Short-term Placement / Diposits Investments Other Current Assets Cash & Bank Balances Total Current Assets Total Assets SIGNIFICANT RATIOS Net working Capital (Rs.) Capital Ratio (x) Gearing (X) Leverage Ratio (X) Current Ratio (X) Total Assets / Net Worth (X) Total Financing / Net Worth (X) Break-up Value (Rs.) Investment in Lease Finance (%) 32.25 0.91 0.10 0.10 6.09 1.10 10.07 34.43 0.90 0.11 0.11 5.96 1.11 10.40 36.87 0.94 0.06 0.06 10.08 1.06 10.77 0.11 33.00 33.11 27.50 10.07 0.58 0.09 38.24 71.35 0.07 33.00 33.07 27.50 12.92 0.71 0.24 41.37 74.44 0.04 33.00 33.04 26.00 12.88 0.98 1.08 40.94 73.98 0.29 0.29 5.99 5.99 6.28 71.35 0.31 0.31 6.94 6.94 7.25 74.44 0.32 0.32 4.06 4.06 4.39 73.98 2009 12 64.63 0.44 65.07 2010 12 64.63 2.56 67.19 2011 12 64.63 4.97 69.59 (Rupees in Millions)

Balance Sheet Growth

Rs. in million

Equity Growth
Rs. in million

80 70 60 50 40 30 20 10 0 2009 2010 2011

80 70 60 50 40 30 20 10 0 2009 2010 2011

Cost Analysis (2010-11)

Operating expenses Management Fee

% 95.96 4.04

Revenue Analysis (2010-11)

Sector Wise Exposure (2010-11)

%
Auto & Allied 7.39 Chemicals, Fertilizers & Pharmaceutical 60.95 Electronics 0.78 Energy, Fuel, Oil & Gas 17.10 Engineering & Allied 12.00 Food, Tobacco & Beverages 1.46 Others 0.32

Income Statement
30th June Reporting Period (Months) INCOME Lease Income Income from Investment Capital gain on Investment Non Interest Income Other income Total Income EXPENSES Operating Expenses Financial Expenses Impairment loss against placement Management Fee Total Expenses Profit Before Taxation Taxation Net Profit APPROPRIATION Dividend Reserve for Bonus Shares Statutory Reserve Other Reserve SIGNIFICANT RATIOS Book value per share (Rs.) Financial Charges / Total Expenses (%) Times interest earned (X) Earning per share (Rs.) Return on equity (%) Return on Assets (%) Debt Equity Ratio (%) Dividend Per Certificate (Rs.) Stock Dividend (%) 10.00 (0.77) (5.73) (5.22) 9.65 10.00 0.33 3.15 2.85 10.80 10.00 0.37 3.46 3.25 15.86 0.42 0.48 4.23 4.61 8.84 (9.67) (9.67) 4.90 0.22 5.13 2.22 0.11 2.12 5.87 0.25 6.12 2.47 0.07 2.41 2009 12 2010 12 2011 12 5.90 1.37 1.32 8.59 (Rupees in Millions) 3.84 6.26 (4.68) 1.08 0.01 0.00 (0.83) 7.35

Income from Investment Other Income

68.67 15.37 Un-realized gain on marketable sec 15.96

The First Constellation Modaraba Team

Mohammad Yousuf Memon
CEO

Mohammad Yasir
Operation Executive

Mohammad Zeeshan
Finance Executive

Commenced Business on : October, 1991 Head Office

Company Information

: 2nd, Floor, Trade Centre, I.I.Chundrigar Road, Karachi. : (21) 32634192, 362634194 : (21) 32626963 : fcmodcmc@yahoo.com : www.modarabas.com.pk/constellation : 2nd Floor, Trade Centre, I.I.Chundrigar Road, Karachi. : 4 : Karachi Stock Exchange : Anjum Asim Shahid Rehman Chartered Accountant : Muhammad Iqbal Ibrahim (Advocate)

Tel Fax Email Website Offices at Staff Strength Listed at Auditors Legal Advisors

Year Book 2011

97

First Dawood Investment Bank Limited

Mr. Abdus Samad Khan Chief Executive Officer

Board of Directors Mr. Rafique Dawood Chairman Mr. Abdus Samad Khan Chief Exective Officer Mr. Ayaz Dawood Director Mr.Omar Hasan Khan Bangash Director Mr.Rasheed Y. Chinoy Director Mr. Riyazul Haque Director Nominne NIT AVM (R) Syed Javed Raza Director Nominee DCM

History, Background, Principal Activities etc.

The Company was incorporated on June 22, 1994 as a public limited Company under the Companies Ordinance, 1984 and is listed on the Karachi Stock Exchange. The Company has obtained the license of leasing business and Investment Finance Services under the Non Banking Finance Companies (Establishment and Regulation) Rules, 2003 and Non Banking Finance Companies and Notified Entities Regulation, 2008 from the Securities and Exchange Commission of Pakistan (SECP).The Company is also acting as Trustee to Term Finance Certificates / Sukuk. The registered office of the Company is situated in Karachi, Pakistan.

Performance Highlights (2010-2011)

During the financial year 2010-11, the company made profit before provisioning and tax of Rs 87 million, however as per company's prudent policy further provisioning and impairment of Rs 74 million brought the profit down to Rs.12.64 million as compared to profit of Rs.234 million last year. Moreover the the company willingly adjusted back the deferred tax assets of Rs 49 million with further tax assessment of Rs 7 million, resulting into net loss of Rs 44 million. Gross revenue for the year is Rs.192 million as compared to Rs.293 million last year. This is primarily offering our earning assets to settle the called laibilities. Administrative expenses for the period under review were Rs.88 million as compared to Rs.100 million last year. The financial cost also has been declined substantially to Rs18 million from Rs.124 million as during the year most of the liabilities were settled off. Total assets after settlemnt of some more liabilities were Rs. 1.82 billion as compared to last financial year of Rs. 3.14 billion.

98

Year Book 2011

Balance Sheet
30th June Reporting Period (Months) EQUITY Issued,subs.& Paid-up-Capital Reserve & Retained Earning Total Equity LIABILITIES Deferred Liabilities Long Term Loans Certificates of Investment Lease Key Money Current Maturity of L.T. Loan S.T. Loan & Running Finance S.T. Certificates of Investment Other Current Liabilities Total Current Liabilities Total Liabilities Total Liabilities & Equity ASSETS Tangible Fixed Assets Net Investment in Lease Finance Long-term Investment Other Long-term Assets Current Portion of Lease Finance Short Term Finance Investments Other Current Assets Cash & Bank Balances Total Current Assets Total Assets SIGNIFICANT RATIOS Net working capital (Rs.) Capital Ratio (X) Gearing (X) Leverage Ratio (X) Current Ratio ( X ) Total Assets / Net worth ( X ) Total financing / Net worth ( X ) Break up Value ( Rs.) Investment in lease finance (%) (895.17 0.79 (9.90) 4.07 (8.28) 981.51 1.75 5.07 9.91 641.86 0.32 1.83 2.09 1.98 3.09 2.09 491.14 53.87 183.12 549.29 410.19 549.40 1,130.42 901.84 921.26 296.55 194.34 3,444.40 5,136.42 200.47 288.75 22.96 344.55 1,052.77 362.25 578.82 150.96 146.59 2,291.38 3,148.11 188.56 60.22 163.95 113.78 922.84 154.54 49.88 57.07 114.05 1,298.39 1,824.89 12.87 1,116.20 9.37 177.08 1,637.29 1,317.82 1,384.47 4,339.58 5,655.11 5,136.42 1,097.01 9.37 111.16 505.65 325.00 479.23 1,309.87 2,527.42 3,148.11 559.13 18.09 277.67 81.42 165.50 131.94 656.53 1,233.75 1,824.89 2009 12 2010 12 2011 12 (Rupees in Millions) 626.49 (1,145.18) (518.69) 626.49 (5.80) 620.69 616.49 (35.35) 591.14

Balance Sheet Growth

Rs. in million 6000
5000 4000 3000 2000 1000 0 2009 2010 2011
800 600 400 200 0 -200 -400 -600 -800 -1000

Equity Growth
Rs. in million

2009

2010

2011

Investment in Lease
Rs. in million
800000 700000 600000 500000 400000 300000 200000 100000 0

Cost Analysis (2010-11)

Plant & Machinery Vehicles-Private Vehicles-Commer. Equipments Other

Operating Expenses Financial Expenses Prov. For Pot. Lease Losses/Loans Change in Fair Value of Invest.

% 48.66 10.17 27.32 13.85

Revenue Analysis (2010-11)

Sector Wise Exposure (2010-11)

%

%
Lease income Mark up Income Capital Gain on Investments Non Interest Income Other income

13.35 37.45 (0.88) 2.23 47.85

Cement Transport and Communication Textile Financials Engineering & Allied Sugar & Allied Chemical & Pharmaceutical Oil & Gas Others

1.42 13.37 15.76 15.41 2.57 2.27 1.67 1.79 45.74

The First Dawood Investment Bank Ltd. Team

Mr. Rafique Dawood Chairman Mr. Abdus Samad Khan Chief Executive Officer Mr. Ayaz Dawood Director Mr. Abbas Qurban Chief Financial Officer & Company Secretary Mr. Rizwan-ul-Haque Head of Risk Management & Merchant Banking Mr. Naveed Naqvi Head of I.T. Department / HR Mr. Nabeel Asif Head of Internal Audit Mr. Syed Farhan Abbas Head of Credit / SAM

Income Statement
30th June Reporting Period (Months) INCOME Lease income Mark up Income Capital Gain on Investments Non Interest Income Other income Total Income EXPENSES Operating Expenses Financial Expenses Prov. For Pot. Lease Losses/Loans Change in Fair Value of Invest. Total Expenses Profit before Taxation Taxation Net Profit APPROPRIATION Dividend Reserve for Bonus Shares Statutory Reserve Other Reserve SIGNIFICANT RATIOS Book value per share (X) Financial charges / Total Exp. (%) Times Interest Earned (X) Earning per share (X) Return on Equity (%) Return on Investment (%) Debt Equity Ratio (X) Dividend per share (%) Stock dividend (%) (8.28) 92.18 (0.60) (28.59) (345.37) (34.88) 9.91 55.43 5.21 6.03 60.85 12.00 2.69 9.44 10.17 1.70 (1.16) (7.45) (2.41) 208.70 333.74 94.05 1,108.27 573.99 212.13 1,988.44 (1,807.57) (16.15) (1,791.42) 99.62 123.89 (206.93) 5.78 22.36 234.25 (143.42) 377.68 88.03 18.40 49.43 25.05 180.91 11.35 (56.93) (44.02) 2009 12 57.40 424.59 (539.28) 37.30 180.87 2010 12 31.45 152.08 (63.43) 26.80 256.42 2011 12 25.67 72.00 (1.69) 4.28 92.00 192.26 (Rupees in Millions)

Commenced Business on : January 01, 1995 Head Office : 1900-B, Saima Trade Towers, I.I. Chundrigar Road, Karachi. : (92-21) 3227 1874-84 : 3227-1912/3 : fdib@firstdawood.com : www.firstdawood.com : Lahore & Islamabad : 34 : Karachi Stock Exchange Guarantee Limited : M. Yousuf Adil Saleem & Co. : Mohsin Tayebaly & Co.

Company Information

Telephone Fax Email Website Offices at Staff Strength Listed At Auditors Legal Advisor

Year Book 2011

99

First Elite Capital Modaraba

Mr. Aamir Iftikhar Khan Chief Executive

Board of Directors Mr. Muneeb Ahmed Dar Chairman Mr. Aamir Iftikhar Khan CEO Dr. Sardar Ahmad Khan Director Mr. Ghazanfar Farrokh Director Mr. Muhammad Javed Amin Director Mrs.Rukhsana Javed Amin Director Mrs.Shahana Javed Amin Director

History, Background, Principal Activities etc.

Crescent Modaraba Management Company Limited was incorporated under the Companies Ordinance 1984 on May 30, 1989 vide Registration No.L-01630 as a public Limited Company. The company floated First Elite Capital Modaraba in 1991 with an authorized capital of Rs.200.00 (M). The Modaraba offered shares worth Rs.100.00 (M) to public which were over subscribed. It is a perpetual, multi purpose and multidimentional Modaraba. It was converted into leasing Modaraba in 1994. The Modaraba is presently very actively engaged in Murabahah financing on micro level, Musharakah and Ijarah. The facilities are extended to the clients who have vast expereince in the respective fields of business and are acknowledged as men of undoubted creditability with fair and straight dealings. The key management of the Modaraba includes experienced people with vast professionalism in field of business administration, banking and marketing.

With a view to strengthen the financial base, the Modaraba continues to build statutory reserves out of the profit of each year, which has accumulated to Rs.22,230,558/=.

Performance Highlights (2010-2011)

During the period under review, the Modaraba has earnd a net profit of Rs.8,811,772/= as compared to Rs.7,320,231/= earned in the corresponding period of last year, an increase of Rs.1,491,541/= in the profit, in spite of all the factors that affected the overall economic structure of the country. The major revenues during the year is generated from Ijarah & Murabahah. The Modaraba earned a gross revenue of Rs.53,702,877/= during the period as against Rs.48,178,317/= to same period of last year. An impairment in marketable securities amounting to Rs.1,142,435/= charged to profit and loss account.

100

Year Book 2011

Balance Sheet
30th June Reporting Period (Months) EQUITY Issued,subs.& Paid-up-Capital Reserve & Retained Earning Total Equity LIABILITIES Deferred Liabilities Long Term Loan Certificate of Investment Lease Key Money Total Non-current Liabilities Current Maturity of L.T. Loan S.T. Loan & Running Finance S.T. Certificate of Investment Other Current Liabilities Total Current Liabilities Total Liabilities Total Equity and Liabilities ASSETS Tangible Fixed Assets Net Investment in Lease Finance Long Term Investment Other Long Term Assets Total Non-current Assets Current Portion of Lease Finance Short-term Finance Investments Other Current Assets Cash & Bank Balances Total Current Assets Total Assets SIGNIFICANT RATIOS Net working Capital (Rs.) Capital Ratio (x) Gearing (X) Leverage Ratio (X) Current Ratio (X) Total Assets / Net Worth (X) Total Financing / Net Worth (X) Break-up Value (Rs.) Investment in Lease Finance (%) 32.81 0.78 0.29 3.30 1.29 0.87 9.93 51.92 34.76 0.76 0.32 3.29 1.32 0.89 10.38 53.33 50.43 0.74 0.36 6.39 1.36 0.87 10.94 55.37 2009 12 2010 12 2011 12 (Rupees in Millions) 113.40 113.40 113.40 (0.85) 4.28 10.64 112.55 117.68 124.04 1.99 16.29 18.28 14.29 14.29 32.57 145.12 2.38 19.81 22.19 15.15 15.15 37.34 155.02 2.98 31.16 34.74 9.36 9.36 44.10 168.14

Balance Sheet Growth

Rs. in million Rs. in million

Equity Growth
140 120 100 80 60 40 20

180 160 140 120 100 80 60 40 20 0 2009 2010 2011

2009

2010

2011

Investment in Lease
Rs. in million 80 70 60 50
Plant & Machinery Vehicles-Private Vehicles-Commer. Equipments Other

Cost Analysis (2010-11)

1.62 75.34 21.06 98.02 21.20 10.97 4.49 10.44 47.10 145.12

1.75 82.67 20.67 105.10 25.42 11.85 6.15 6.48 49.91 155.02

2.97 93.11 12.27 108.35 23.32 13.73 5.91 16.82 59.79 168.14

40 30 20 10 0

%
Operating Expenses Financial Expenses
99.98 0.02

Revenue Analysis (2010-11)

Sector Wise Exposure (2010-11)

%
3.62 Consumer facilities 0.36 Electronics Energy, Fuel, Oil & Gas 1.02 Services 0.30 Textile 52.42 Transport & Communication 2.58 Others 39.70

%
Lease Income Non Interest Income Other Income

74.17 19.3 6.53

Income Statement
30th June Reporting Period (Months) INCOME Lease income Mark-up income Capital gain on Investment Non Interest Income Other income Total Income EXPENSES Operating Expenses Financial Expenses Prov. for Pot. Lease Losses/ Loan Prov. for Dimn. in value of Investment Total Expenses Profit Before Taxation Taxation Net Profit APPROPRIATION Dividend Reserve for Bonus Shares Statutory Reserve Other Reserve SIGNIFICANT RATIOS Book value per share (Rs.) Financial Charges / Total Expenses (%) Times interest earned (X) Earning per share (Rs.) Return on equity (%) Return on Assets (%) Debt Equity Ratio (%) Dividend Per Certificate (Rs.) Stock Dividend (%) 2009 12 2010 12 2011 12 (Rupees in Millions) 27.65 35.66 39.83 0.33 0.56 0.95 11.47 10.19 10.37 1.62 1.76 2.55 41.07 31.59 0.01 2.58 34.18 6.89 6.89 5.10 1.38 9.93 0.12 719.78 0.61 6.12 4.75 0.45 48.17 39.76 0.01 1.07 40.85 7.32 7.32 5.67 1.46 10.38 0.05 557.46 0.65 6.22 4.72 0.50 53.70 43.74 0.01 1.14 44.89 8.81 8.81 6.24 2.03 10.94 0.06 907.37 0.78 7.10 0.75 0.10 0.55

Mr. Muneeb Ahmed Dar

Chairman

The First Elite Capital Modaraba Team

Mr. Muhammad Arif Hilal
Chief Financial Officer/Company Secretary

Mr. Aamir Iftikhar Khan

Chief Executive

Commenced Business on : 26-Sep-91 Head Office : 31/10-A, Abu Baker Block, New Garden Town, Lahore - Pakistan : 042-35913701-2 : 042-35913703 : fecm@nexlinx.net.pk : fecm.com.pk : : 14 : Islamabad Stock Exchange Lahore Stock Exchange Karachi Stock Exchange : Rahman Sarfaraz Rahim Iqbal Rafiq, Chartered Accountants : Mr. Haq Nawaz Chattha International Legal Services

Company Information

Tel Fax Email Website Offices at Staff Strength Listed at

Auditors

Legal Advisors

Year Book 2011

101

First Equity Modaraba

Mr. Adil A. Ghaffar Chief Executive/Director

Board of Directors Mr. Zahid Bashir Director Mr. Nadeem Maqbool Director Mr. Adil A Ghaffar CEO

History, Background, Principal Activities etc.

First Equity Modaraba (FEM) is managed by Premier Financial Services (Private) Limited, derives its board from the Crescent Group, with direct involvement in more than twenty business sectors. This cross-sectoral expertise, enhanced by other linkages, is an invaluable base for informed decision making. FEM's professional management draws on this unique resource to make optimal use of its charter to undertake trading, manufacturing and capital market operations, their financing and facilitation. The Modaraba is a member of Karachi and Islamabad Stock Exchanges and currently operating its brokerage activities in Karachi Stock Exchange. First Equity Modaraba was floated in end 1991 as a multipurpose and perpetual closed-end fund. Its initial paid-up capital fund was Rs.200 have increased to Rs 524 million by stock dividends of Rs 62 million and issuance of Right certificate of Rs 262 million. The Modaraba has so far distributed Rs. 62 million in stock dividends and Rs. 495 million in cash dividends.

Performance Highlights (2010-2011)

The profit for the year amounted to Rs. 180,251 as compared to loss of Rs 714,030 for the last year. The profit per certificate as at June 30, 2011 was Rs. .003 as compared to Rs. (0.014) last year and the break up value was Rs 10.73. The decision to curtail stock market operations turned out to be favorable due to the volatile movements in stock market. Unless new financing products are introduced or the government injects fresh liquidity, market trends will remain erratic which affects the brokerage business. The Modarabas wholly owned subsidiary, Equity Textile Ltd (ETL), commenced the commercial production from April 01, 2007.

102

Year Book 2011

Balance Sheet
30th June Reporting Period (Months) EQUITY Issued,subs.& Paid-up-Capital Reserve & Retained Earning Total Equity LIABILITIES Deferred Liabilities Long Term Loan Certificate of Investment Lease Key Money Total Non-current Liabilities Current Maturity of L.T. Loan S.T. Loan & Running Finance S.T. Certificate of Investment Other Current Liabilities Total Current Liabilities Total Liabilities Total Equity and Liabilities ASSETS Tangible Fixed Assets Intangible Fixed Assets Net Investment in Lease Finance Long Term Investment Other Long Term Assets Total Non-current Assets Current Portion of Lease Finance Short-term Finance Investments Other Current Assets Cash & Bank Balances Total Current Assets Total Assets SIGNIFICANT RATIOS Net working Capital (Rs.) Capital Ratio (x) Gearing (X) Leverage Ratio (X) Current Ratio (X) Total Assets / Net Worth (X) Total Financing / Net Worth (X) Break-up Value (Rs.) Investment in Lease Finance (%) 5.17 1.08 194.00 0.93 0.07 6.11 1.07 0.23 10.44 0.00 208.00 0.92 0.09 5.24 1.09 0.21 10.74 2009 12 2010 12 2011 12 (Rupees in Millions) 524.00 524.00 524.00 20.00 24.00 39.00 544.00 548.00 563.00 1.00 1.00 45.00 45.00 46.00 590.00 15.00 59.00 278.00 5.00 357.00 119.00 12.00 91.00 11.00 233.00 590.00 1.00 1.00 38.00 38.00 39.00 587.00 19.00 53.00 278.00 5.00 355.00 125.00 17.00 70.00 20.00 232.00 587.00 1.00 1.00 49.00 49.00 50.00 613.00 19.00 53.00 280.00 4.00 356.00 119.00 12.00 69.00 57.00 257.00 613.00

Balance Sheet Growth

Rs. in million

Equity Growth
Rs. in million

700 600 500 400 300 200 100 0 2009 2010 2011

600 500 400 300 200 100 0 2009 2010 2011

Cost Analysis (2010-11)

Operating expenses Prov. For Dimn. In vlaue of investment

94.00 6.00

Revenue Analysis (2010-11)

Sector Wise Exposure (2010-11)

%
Auto & Allied Chemical, Fertilizers & Pharmaceutical Consumer facilties Education Energy, Fuel, Oil & Gas Engineering & Allied Financial Sector Services Textile Others

1.00 2.00 6.00 6.00 3.00 2.00 3.00 13.00 52.00 12.00

%
Capital Gain on Ivestment Non Interest Income Other Income
(138.88) 105.55 133.33

Income Statement
30th June Reporting Period (Months) INCOME Lease income Mark-up income Capital gain on Investment Non Interest Income Other income Total Income EXPENSES Operating Expenses Financial Expenses Prov. for Pot. Lease Losses/ Loan Prov. for Dimn. in value of Investment Total Expenses Profit Before Taxation Taxation Net Profit APPROPRIATION Dividend Reserve for Bonus Shares Statutory Reserve Other Reserve SIGNIFICANT RATIOS Book value per share (Rs.) Financial Charges / Total Expenses (%) Times interest earned (X) Earning per share (Rs.) Return on equity (%) Return on Assets (%) Debt Equity Ratio (%) Dividend Per Certificate (Rs.) Stock Dividend (%) 20.96 2.30 23.26 0.35 0.20 0.15 0.07 10.38 0.03 0.03 0.03 23.00 7.00 30.00 (1.00) (1.00) 10.44 (0.01) (0.18) (0.17) 16.55 0.01 1.62 18.18 0.24 0.06 0.18 10.74 (0.003) 0.18 0.16 2009 12 2010 12 2011 12 (Rupees in Millions) 16.81 1.45 4.00 (6.86) 17.00 19.11 5.35 8.00 6.17 23.61 29.00 18.42

The First Equity Modaraba Team

Mr. Adil A Ghaffar
Chief Executive Officer

Mr. Sultan Nayani

Assiatant Manager - Brokerage Trading

Mr. Qazi Obaid Ullah

Chief Financial Officer & Company Secretary

Commenced Business on : Jan-92 Head Office

Company Information

: B-1004 10 Floor Lakson Square building # 3 Sarwar Shaheed Road Karachi : 021-35672815-18 : 021-35686116 : info@firstequitymodaraba.com.pk : www.firstequitymodaraba.com.pk : Room # 503, Karachi Stock Exchange Building, Stock Exchange Road, Karachi. : 11 : Karachi, Islamabad & Lahore Exchanges : Avais Hyder Liaquat Nauman : Mohsin Tayebally & Co.

Tel Fax Email Website Stock Office Staff Strength Listed at Auditors Legal Advisors

Year Book 2011

103

First Fidelity Leasing Modaraba

Mr. Wasim-ul-Haq Osmani CEO / Director

Board of Directors Siyyid Tahir Nawazish Chairman Mr. Wasim ul Haq Osmani CEO Mr. Shahid Iqbal Choudhry Director Mr. Sheikh Muhammad Nasim Director Mr. Abdul Hameed Kiyani Director

History, Background, Principal Activities etc.

First Fidelity Leasing Modaraba was floated on November 06, 1991 under the Modaraba Companies and Modaraba (Floatation & Control) Ordinance, 1980. It is a perpetual, multipurpose and multi-dimensional Modaraba and is managed by Fidelity Capital Management Company (Pvt.) Limited.The Modaraba is also a corporate member of the Islamabad Stock Exchange (Guarantee) Limited and National Commodity Exchange Limited.

Performance Highlights (2010-2011)

"Unprecedented Floods and energy crisis made financial year ended 30th June, 2011 as one of the low performing year for the economy of Pakistan. Inflation and liquidity crunch continued during the year and business remained stifled for growth. The Modaraba in view of the situation confined itself to utilize existing resources and not to indulge in expansion through resource mobilization.The annual results posted an after tax profit Rs. 8.68 Millions as against loss of Rs. 11.849 million incurred during last year .The loss incidence in substance has stopped and profitability is expected to continue and grow in the coming years. CREDIT RATING Rating Short Term Medium / Long Term Rating Agency PACRA A2 BBB

104

Year Book 2011

Balance Sheet
30th June Reporting Period (Months) EQUITY Issued,subs.& Paid-up-Capital Reserve & Retained Earning Total Equity LIABILITIES Deferred Liabilities Long Term Loan Employees benefits Lease Key Money Total Non-current Assets Current Maturity of L.T. Loan S.T. Loan & Running Finance S.T. Certificate of Investment Other Current Liabilities Total Current Liabilities Total Liabilities Total Liabilities & Equity ASSETS Tangible Fixed Assets Net Investment in Lease Finance Long-term Investment Other Long-term Assets Total Non-current Assets Current Portion of Lease Finance Short Term Finance Investments Other Current Assets Cash & Bank Balances Total Current Assets Total Assets SIGNIFCANT RATIOS Net working capital (Rs.) Capital Ratio (X) Gearing (X) Leverage Ratio (X) Current Ratio ( X ) Total Assets / Net worth ( X ) Total Financing / Net worth ( X ) Break-up Value ( Rs.) Investment in Lease Finance (%) 36.18 0.71 0.22 0.32 1.52 1.40 0.38 12.37 15.93 112.69 0.75 0.20 0.29 2.30 1.33 0.33 12.31 10.26 105.82 0.91 0.10 4.48 1.12 0.81 12.69 6.07 32.86 72.91 59.88 186.68 50.64 2.99 46.33 5.47 105.43 457.76 30.86 44.41 4.57 153.79 61.37 2.52 121.94 13.40 199.23 432.86 29.78 22.77 174.38 12.06 238.98 1.53 75.86 42.36 16.49 136.24 375.23 2.94 33.33 25.53 25.00 13.00 31.25 69.25 131.05 457.76 1.69 5.98 13.45 53.27 5.50 27.77 86.54 107.66 432.86 0.43 1.84 7.34 9.61 1.15 29.28 30.43 40.04 375.23 2009 12 264.14 62.57 326.71 2010 12 264.14 61.06 325.20 2011 12 264.14 71.05 335.19 (Rupees in Millions)

Balance Sheet Growth

500 450 400 350 300 250 200 150 100 50 0 2009 2010 2011

Equity Growth
400 350 300 250 200 150 100 50 0 2009 2010 2011

Rs. in million

Rs. in million

Investment in Lease
Rs. in million 18 16 14 12 10 8 6 4 2 0

Cost Analysis (2010-11)

Plant & Machinery Vehicles-Private Vehicles-Commer. Equipments Other

%

Operating expenses Financial expenses Prov. For Doubtful Debts

57.17 11.88 30.95

Revenue Analysis (2010-11)

Sector Wise Exposure (2010-11)

Construction
% Lease Income 16.43 Profit on / Morabaha / Musharika 19.29 16.52 Non Interest Income 47.76 Other Income

39.47 1.03 1.95 6.87 50.68

Food, Tobacco & Beverages Textile Transport & Communication Others

Income Statement
30th June Reporting Period (Months) INCOME Lease income Profit on / Morabaha / Musharika Capital Gain on Investments Non Interest Income Other income Total Income EXPENSES Operating Expenses Financial Expenses Prov. For Doubtful Debts Prov. For Dimn. In Value of Invest. Total Expenses Profit Before Taxatin Taxation Net Loss APPROPRIATION Dividend Reserve for Bonus Shares Statutory Reserve Other Reserve SIGNIFICANT RATIOS Book Value per Share (X) Financial Charges / Total Exp. (%) Times Interest Earned (X) Earning per Share (X) Return on Equity (%) Return on Assets (%) Debt Equity Ratio (X) Dividend per Share (%) Stock Dividend (%)

The First Fidelity Leasing Modaraba Team

2009 12 44.68 26.23 0.53 71.44 49.54 10.17 3.07 11.25 74.03 (2.58) (0.31) (2.27) 12.37 14.33 1.05 (0.09) (0.48) (0.67) 21.83 2010 12 36.46 18.16 1.26 55.88 41.53 9.47 5.60 10.81 67.41 (11.53) 0.32 (11.85) 12.31 15.32 0.37 (0.45) (3.64) (2.66) 19.91 2011 12 11.74 13.79 11.81 34.13 71.47 35.90 7.46 19.42 62.79 8.68 8.68 1.74 12.69 11.88 4.77 0.33 2.63 2.15 0.34

Mr. Wasim-ul-Haq Osmani

Chief Executive Officer

Mr. Muhammad Younas Chaudhry

Vice President - Head of Credit

(Rupees in Millions)

Mr. Muhammad Arshad

Vice President - Head Internal Audit

Mr. Muhammad Waheed

Vice President - CFO

Commenced Business on : December 05, 1991 Head Office : 90-A-1, Canal Park, Gulberg II, Lahore. : 042-32405555 : 042-35759155 : info@fidelitymodaraba.com : www.fidelitymodaraba.com : Lahore and Islamabad : 31 : KSE, LSE, ISE : Riaz Ahmed & Company Chartered Accountants : Salim & Baig Advocates

Company Information

Telephone Fax Email Website Offices at Staff Strength Listed at Auditors Legal Advisors

Year Book 2011

105

First Habib Bank Modaraba

Mr. S. Anvaar Rasool CEO

Board of Directors Mr. R. Zakir Mahmood Chairman Mr. S. Anvaar Rasool CEO Mr. Sohail Malik Director Mr. Aamir Husan Irshad Director

History, Background, Principal Activities etc.

"First Habib Bank Modaraba (the Modaraba) is a multi-purpose, perpetual Modaraba floated in Pakistan in 1991 under the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980, and Modaraba Companies and Modaraba Rules, 1981. It is managed by Habib Bank Financial Services (Private) Limited, a wholly owned subsidiary of Habib Bank Limited. The Board of Directors of HBFSL includes professional bankers with vast experience of domestic and International banking. In addition to presence of two senior managers of HBL on HBFSL Board; the Board is chaired by CEO of HBL. It is listed on the Karachi, Lahore and Islamabad Stock Exchanges. The registered office of the Modaraba is situated at 7th Floor, Habib Bank Annexe, Hasrat Mohani Road, Karachi. It offers different Islamic Financial Products viz, Ijarah, Murabaha, Sukuk and Diminishing Musharika for short and long term resource requirements of trade and Industry. However its core activity continued to be Ijarah of plant & machinery, equipments, automobiles and computers. FHBM also invest in listed Equity securities, GoP Ijarah Sukuk and other high rated Sukuks issued by public companies."

CREDIT RATING Rating Short Term Medium / Long Term Rating Agency JCR-VIS A-1+ AA-

Performance Highlights (2010-2011)

During the year under review, Modarabas total assets grew to the level of Rs 809.6 Million. Operating Profit increased 43 % to Rs 68.1 Million due to prudent management and good recoveries resulting in reduction in provisions. Diligent monitoring of funds management resulted in continued reduction in financial expenses and further improvement in other income. As a result, Net Profit increased to Rs 71.5 Million which is a 59 % increase from the corresponding period last year and translates into earnings per share of Rs 1.8 ( 2010: 1.13).

106

Year Book 2011

Balance Sheet
30th June Reporting Period (Months) EQUITY Issued, subs.& Paid-up-Capital Reserve & Retained Earning Total Equity LIABILITIES Deferred Liabilities Long Term Loan Certificate of Investment Lease Key Money Total Non-current Liabilities Current Maturity of L.T. Loan S.T. Loan & Running Finance S.T. Certificate of Investment Other Current Liabilities Total Current Liabilities Total Liabilities Total Equity and Liabilities ASSETS Tangible Fixed Assets Net Investment in Lease Finance Long Term Investment Other Long Term Assets Total Non-current Assets Current Portion of Lease Finance Short Term Finance Investments Other Current Assets Cash & Bank Balances Total Current Assets Total Assets SIGNIFICANT RATIOS Net working Capital (Rs.) Capital Ratio (X) Gearing (X) Leverage Ratio (X) Current Ratio (X) Total Assets / Net Worth (X) Total Financing / Net Worth (X) Break-up Value (Rs.) Investment in Lease Finance (%)

Balance Sheet Growth

2009 12 397.07 224.15 621.23 16.67 68.67 85.34 67.50 8.03 45.07 120.60 205.94 827.17 1.58 756.34 0.15 758.07 56.67 7.92 0.42 4.07 69.10 827.16 (51.51) 0.75 0.84 0.15 0.19 1.33 0.15 15.65 91.44 2010 12 397.07 250.54 647.61 67.70 67.70 48.68 48.68 116.38 764.00 0.45 542.67 51.18 0.90 595.21 21.40 51.64 69.19 1.59 25.00 168.82 764.03 1.20 0.85 0.18 3.47 1.18 16.31 74.00 2011 12 397.07 280.00 677.07 79.02 79.02 53.52 53.52 132.54 809.61 0.35 502.34 99.18 0.75 602.34 17.43 46.25 80.75 40.92 21.64 206.99 809.61
Rs. in million 1200

Equity Growth
Rs. in million

800 700 600 500 400 300 200 100 0

(Rupees in Millions)

1000 800 600 400 200 0 2009 2010 2011

2009

2010

2011

Investment in Lease
Rs. in million
250

Cost Analysis (2010-11)

200

Plant & Machinery

150

Vehicles-Private Vehicles-Commer. Equipments Other

100

50

Operating expenses Financial expenses Provision for pot. Lease losses / loan

97.60 0.03 2.37

Revenue Analysis (2010-11)

Sector Wise Exposure (2010-11)

153.00 0.84 0.20 3.87 1.20 17.05 64.00

Lease Income 91.33 Mark-up / Morabaha / Sukuk 5.14 3.53 other income

Chemical, Fertilizers & Phar Energy, Fuel, Oil & Gas Engineering & Allied Food, Tobacco & Beverages Services Sugar Textile Transport & Communication Others

15.11 3.10 5.05 14.01 26.92 2.33 9.93 1.13 22.42

Income Statement
30th June Reporting Period (Months) INCOME Lease Income Mark-up / Morabaha / Sukuk Capital Gain on Investment Non Interest Income Other Income Total Income EXPENSES Operating Expenses Financial Expenses Pro. for Pot. Lease Losses/Loan Provision for Diminution in value of investment Total Expenses Profit before Taxation Taxation Net Profit APPROPRIATION Dividend (last year) Reserve for Bonus Shares Statutory Reserve Other Reserve SIGNIFICANT RATIOS Book Value per Share (Rs.) Financial Charges/Total Expenses (%) Times Interest Earned (X) Earning per Share (Rs.) Return on Equity(%) Return on Assets (%) Debt Equity Ratio (%) Dividend per Share(Rs.) Stock Dividend (%) 15.65 8.38 0.49 0.50 3.19 2.38 14.84 0.50 16.31 2.00 12.49 1.13 7.00 6.00 1.10 17.05 925.44 1.80 11.00 9.00 1.30 19.85 3.96 19.85 8.90 43.68 14.31 380.68 40.43 49.20 9.38 479.69 19.78 19.78 338.15 6.08 24.89 369.12 44.98 44.98 246.69 0.08 5.99 71.57 71.57 252.76 2009 12 496.82 0.51 2.14 499.47 2010 12 405.07 0.51 8.51 414.10 2011 12 296.22 16.67 11.45 324.32 (Rupees in Millions)

The First Habib Bank Modaraba Team

Mr. S. Anvaar Rasool Chief Executive Officer Mr. Shabi Hasan CFO & Company Secretary

Commenced Business on : March 16, 1991

Company Information

Head Office Telephone Fax Email Website Offices at Listed at Auditors Lawyers

: Habib Bank Annexe, Hasrat Mohani Road, Karachi. : (92-21) 32276836 : (92-21) 32276840 : syed.rasool@hbl.com : www.fhbm.com.pk : Nil : Karachi, Lahore & Islamabad Stock Exchanges : M/s. KPMG Taseer Hadi & Co. Chartered Accountants : Kashif Hanif Legal Advisor

Year Book 2011

107

First Habib Modaraba

Mr. Muhammad Shoaib Managing Director / CEO

Board of Directors Mr. Wazir Mumtaz Ahmed Chairman Mr. Muhammad Shoaib Managing Director / CEO Mr. Wazir Husain Jafree Director Mr. Abbas Ali Muhammad Director

History, Background, Principal Activities etc.

Alhamdulillah, First Habib Modaraba (FHM) has completed its successful 26 years of business operations. FHM commenced its business operation in March, 1985, with an initial capital of Rs.25.0 million only. Continuing with solid, dynamic and prudent approach now the FHM has a total equity base over Rs.2.9 billion and assets size around Rs.4.0 billion. The basic aim of the FHM was to make contribution towards the transformation of our mercantile as well as financial system and dealings in line with principles elaborated in Shariah. FHM being pioneer in the Modaraba and Non-Banking Islamic Financial sector played a very vital role for promotion of Islamic Finance in Pakistan's Islamic Financial Market. FHM always remain best performing Modaraba within the Modaraba sector. The management of FHM is heir of rich tradition of trading, banking and finance. Business Operations of FHM have always been backed by valuable expertise in the field of fund management. FHM is much stronger today in terms of the healthy size of equity, strong balance sheet footing and sound profitability with stronger management talent and vibrant human resource. OPERATION REVIEW By the Grace of Allah, despite adverse economic conditions globally and locally throughout the year, FHM was able to demonstrate its resilience in terms of asset quality and profitability. In exceptional business, circumstances during the year the performance of FHM remained satisfactory. At the same time substantial efforts was made on more strengthening risk management strategies on credit and other business operations. The rental collection on Ijarah financing for the year ended June 30th, 2011 reflects 1.418 billion as compared to the preceding year 1.342 billion, however over all profitability was enhance from 277 millions(2011) to 267 millions(2010) which shows excellent portfolio management by the management of FHM. CREDIT RATING M/s Pakistan Credit Rating Agency (private) Limited, (PACRA) has again repose their confidence in sound and stable position of FHM and maintained rating scale of AA+ for long term and A1+ for short term for the period ended 30th June, 2011. A1+ is highest rating in the short term scale assigned by PACRA. As per PACRA's assessment, the rating denotes FHM's sound risk absorption capacity emanating from a strong equity base with very low leveraging. Moreover, the Modaraba has a healthy liquidity profile, as reflected in its sizeable investment book, yielding a stable dividend stream. BEST PERFORMING MODARABA AWARD BY NBFI & MODARABA ASSOCAITION OF PAKISTAN For the financial year ended 30th June, 2011, the NBFI and Modaraba Association of Pakistan, has given best performing Modaraba awards to FHM. So far FHM has received 11 awards from NBFI and Modaraba Association of Pakistan. CORPORATE EXCELLENCE AWARD Besides best performance award, the FHM is also receiving "Corporate Excellence Award" from Management Association of Pakistan for last four consecutive years within the category of Leasing and Modaraba sector. In the ceremony of 27th Corporate Excellence Awards held in November last year, FHM received corporate excellence certificate award from the Management Association. So far FHM has secured three Excellence Certificate Awards and one Excellence Trophy Award. BEST CORPORATE REPORT AWARD "ICAP/ICMAP" The joint committee of ICAP/ICMAP has given "Best Corporate Report Award" to FHM under the category of Non Banking Financial Institutions (NBFIs) in their award ceremony held in October, last year. The NBFI is one of the largest sectors comprising of Insurance, Leasing, Investment Banks, Mutual Funds and Modarabas. This category having more than 100 listed entities and out of which the Joint Committee of ICAP

and ICMAP had selected five entities and FHM was one of them, ranked as second position. Alhamdullilah, so far FHM is the first Modaraba who has awarded for best corporate report award within the entire Modaraba sector. BEST CORPORATE REPORT AWARD "SAFA" South Asian Federation of Accountants (SAFA) has given "Certificate of Merit" award to FHM for "Best Presented Account" and "Corporate Governance Disclosure" within the category of Non Banking Financial Institutions (NBFI) sector of Pakistan. SAFA is an Apex Body of South Asian Association for Regional Co-operation (SAARC) and represents membership of the national chartered accountancy and cost and management accountancy institutions in South Asian Countries namely Bangladesh, India, Nepal, Sri Lanka and Pakistan. Alhamdullilah, this is again a great achievement not only for FHM but certainly an honor for entire Modaraba and NBFI sector. FUTURE STRATEGY Islamic Financial sector is increasing on very good pace globally. As estimated the assets of Islamic finance industry has cross US$ one trillion mark. The scope and range Islamic finance and its related businesses will remain to be promising segments of financial world. In Pakistan, Islamic finance industry is also growing at average rate of around 30%. According to SBP Islamic bulletin dated 30th September, 2011 the size of Islamic Banking has increase to around Rs.570.0 billion. With the advent of Islamic banks in the banking arena the awareness of general public about Islamic financial products improved a lot and has provided ample room for the growth in this segment. The present market share of Islamic banking is around 8%. We can say that Islamic finance market in Pakistan is still untapped and the demand of Islamic finance is on the rise. In order to have low cost funds for development of quality assets portfolio, we are planning to target retail Islamic deposits. We have secured Shariah compliance Certification from two well renowned Shariah scholars which will support the Modaraba to gain the confidence of the prospective investors who wish to place their funds in the Shariah compliant institution. FHM, while remaining cautious and prudent during the prevailing economic slow down, is focused to take benefit of every good opportunities that adds value of all our stakeholders. It will be appreciated that we have been continuously upgrading our business strategies in order to cope with any extreme volatile and negative trend of the business. We must say that on our prudent and proactive risk management approach has always helped us to maintain leading position in entire Modaraba sector. We will continue on strategy of focusing of good clientele in diversified sectors with a secured assets mix combination. Our aim is to remain a best Islamic Financial Services Institution and leading Modaraba within the Modaraba sector. We believe that the measure of our progress is not just our financial achievement, but it should add value for our all stakeholders. We shall continue to build a best performance culture that overcomes all the challenges of business and operations and promote best business practices and good governance. FHM is also intending to open new branches in the potential areas. The optimization of use of technology to ensure cost effective operations, strengthening of control, efficient management information, improve staff training and high service standard system are always remain part of strategic planning of FHM. Inshaallah, we will maintain our growth momentum and give even better results based on Shariah principles. Credit Rating Agency: PACRA Rating (Short Term) A1+ Rating (Long Term) AA+

108

Year Book 2011

Balance Sheet
30th June Reporting Period (Months) EQUITY Issued, subs. & Paid-up-Capital Reserve & Retained Earning Total Equity LIABILITIES Short Term Murabaha Finance Long Term Morabaha Finance Long Term Certificate of Musharaka Lease Key Money Current Maturity of Morabaha Current Maturity of Certificate of Mushraka Short term Musharaka finance Other Current Liabilities Total Current Liabilities Total Equity & Liabilities ASSETS Tangible Fixed Assets Assets Leased Out Deminishing Musharika Other Long-term Assets Current Portion of deminishing Musharika Short-term Murabaha Finance Investments Other Current Assets Cash & Bank Balances Total Current Assets Total Assets SIGNIFICANT RATIOS Total Assets/Net Worth (X) Total Financing / Net Worth (X) Gearing Ratio (X) Current Ratio (X) Net working capital (Rs.) Break-up Value (Rs.) Leverage Ratio (X) 1.25 0.74 0.13 2.20 805.00 2.78 17.00 1.31 0.76 0.18 1.79 814.00 14.34 22.00 1.33 0.72 0.20 1.87 711.00 15.17 25.00 6.84 2,096.89 14.03 0.08 11.22 826.98 23.02 302.14 1,163.36 3,281.20 6.33 2,435.30 32.29 1.63 37.76 1,036.69 12.86 212.34 1,299.65 3,775.20 5.69 2,372.90 162.26 2.84 71.09 1,251.32 47.95 161.53 1,531.89 4,075.58 6.37 128.98 343.46 184.24 527.70 3,281.20 0.67 156.47 514.62 211.24 725.86 3,775.20 3.00 191.77 610.29 211.12 821.41 4,075.21 2009 12 1,008.00 1,610.15 2,618.15 2010 12 1,008.00 1,884.20 2,892.20 2011 12 1,008.00 2,051.00 3,059.00 (Rupees in Millions)

Balance Sheet Growth

Rs. in million
4500 4000 3500 3000 2500 2000 1500 1000 500 0 2009 2010 2011

Equity Growth
Rs. in million 3500
3000 2500 2000 1500 1000 500 0 2009 2010 2011

Investment in Lease
Rs. in million
1800 1600 1400 1200 1000 800 600 400 200 0

Cost Analysis (2010-11)

Plant & Machinery Vehicles-Private Vehicles-Commer. Equipments Other

Operating expenses 94.70 5.30 Financial expenses

Revenue Analysis (2010-11)

Sector Wise Exposure (2010-11)

%

Income Statement
30th June Reporting Period (Months) INCOME Lease income Mark-up/Morabaha/Musharaka Capital gain on Investment Other income Total Income EXPENSES Operating Expenses & Depreciation Financial Expenses Prov. for Doubtful Debts Prov. for Dimn. in value of invest. Profit before Taxation Taxation Net Profit APPROPRIATION Dividend (21.00% years 2010) Reserve for Bonus shares Statutory Reserve Other Reserve SIGNIFICANT RATIOS Book value per Certificate (Rs.) Financial Charges / Total Exp. (%) Times Interest Earned (x) Net profit Margin (%) EPS (Certificates of Rs. 5/- each) Rs. Earning per face value (%) Return on Assets (%) Return on Equity (%) Dividend per Certificate Rs. Stock Dividend (%) Capital adequcay ratio Investment in Lease Finance (%) Capital Ratio (X) Debt equity ratio 9.80 5.33 4.25 13.89 1.21 24.17 7.42 12.36 1.00 65.00 58.72 0.79 13.36 10.10 4.65 6.26 19.83 1.33 26.53 7.08 13.13 1.05 67.00 58.13 0.76 18.00 10.43 5.59 5.20 19.34 1.38 27.57 6.82 13.22 1.10 69.00 54.00 0.75 20.00 201.60 48.72 211.68 53.48 221.76 55.58 1,435.48 75.02 243.61 243.61 1,124.16 50.85 267.40 267.40 1,184.81 66.17 277.92 2009 12 1,662.61 3.60 87.90 1,754.11 2010 12 1,342.17 6.40 93.80 1,442.41 2011 12 1,418.33 18.90 91.60 1,528.88 (Rupees in Millions)

Lease Income Other income

% 98.68 1.32

5.76 Auto & Allied 0.04 Cement Chemical, Fertilizers & Pharmaceutical 33.49 Construction 0.20 Consumer Facilities 2.35 Education 0.59 Cable & Electric Goods 1.82 Energy, Fuel, Oil & Gas 7.31 Financial Sector 5.63 Food, Tobacco & Beverage 4.51 Health Care 1.56 Services 14.61 Sugar 5.54 Textile 6.04 Transport & Communication 2.64 Others 7.91

The First Habib Modaraba Team

Mr. Tehsin Abbas Chief Financial Officer Mr. Amir Kaleem Head of Marketing Mr. Adnan Thanwey Company Secretary Mr. Intisar Usmani Head of Credit and Compliance Mr. Fayyaz Hussain Qazi Head of IT Mr. Shakeel Ahmed Mangroria Internal Auditor

Commenced Business on : March 1985 Head Office : 5th Floor, HBZ Plaza, I.I. Chundrigar Road, Karachi. : 111-346-346 : (92-21) 32635949-51 (3 lines) 32635168-9 (2 lines) 32633370-1 : (92-21) 32627373 : fhm@habibmodaraba.com : www.habibmodaraba.com : Lahore, Islamabad & Faisalabad : 34 : Karachi, Lahore and Islamabad Stock Exchange : BDO Ebrahim & Company Chartered Accountants : Mohsin Tayebaly & Co.

Company Information

277.92

UAN Telephone Fax Email Website Offices at Staff Strength Listed at Auditors Legal Advisors

Year Book 2011

109

First IBL Modaraba

Dr. Hasan Sohaib Murad CEO

Board of Directors Dr. Hasan Sohaib Murad Chairman & CEO Mr. Arslan Khan Khakwani Director Mr. Shaheen Rashid Director Mr. Ale Imran Director

History, Background, Principal Activities etc.

First IBL Modaraba is registered under the Modaraba companies & Modaraba (Floatation and Control) Ordinance, 1980 and the rules framed there under and is managed by IBL Modaraba Management (Pvt) Ltd, a company incorporated in Pakistan.The Modaraba is perpetual and multi purpose, engaged in the business of Ijarah, Musharikah, Murabahah, Investment in securities and other related activities. The Modaraba is listed on Karachi, Lahore and Islamabad Stock Exchanges.First IBL Modaraba was formerly known as "First Sanaullah Modaraba" which was incorporated on October 22, 1989.

Performance Highlights (2010-2011)

The net loss of Modaraba for the current year is Rs. 8.782 million as compare to the net profit of Rs. 2.08 million in the year ended June 30, 2010. In current year Modaraba earned Rs. 37.784 million as compare to Rs. 60.204 million in previous year.During the year Modaraba has controlled the overall expenses by Rs. 11.324 million, this decline is due to reduction in provision and finance cost. Due to loss incurred in the current year no dividend is declared by the Board of Directors and nothing is transferred in Statutory reserves.

110

Year Book 2011

Balance Sheet
30th June Reporting Period (Months) EQUITY Issued,subs.& Paid-up-Capital Reserve & Retained Earning Total Equity LIABILITIES Deferred Liabilities Long Term Loan Certificate of Investment Lease Key Money Total Non-current Liabilities Current Maturity of L.T. Loan S.T. Loan & Running Finance S.T. Certificate of Investment Other Current Liabilities Total Current Liabilities Total Liabilities Total Equity and Liabilities ASSETS Tangible Fixed Assets Net Investment in Lease Finance Long Term Investment Other Long Term Assets Total Non-current Assets Current Portion of Lease Finance Short-term Finance Investments Other Current Assets Cash & Bank Balances Total Current Assets Total Assets SIGNIFICANT RATIOS Net working Capital (Rs.) Capital Ratio (x) Gearing (X) Leverage Ratio (X) Current Ratio (X) Total Assets / Net Worth (X) Total Financing / Net Worth (X) Break-up Value (Rs.) Investment in Lease Finance (%) 181.64 0.64 0.54 0.54 2.43 4.70 1.13 11.84 7.08 210.57 0.65 0.53 0.53 2.65 153.19 1.10 12.28 6.14 137.98 0.85 0.09 0.17 4.38 1.21 0.22 11.55 2.21 19.24 3.70 30.00 9.04 61.98 1.44 27.14 278.17 1.44 307.89 369.87 21.12 17.13 3.38 41.63 30.00 23.31 283.88 1.06 338.25 379.88 2.78 15.85 85.93 104.56 109.13 14.22 53.41 1.98 178.74 283.30 3.80 3.80 20.85 5.12 85.00 16.03 126.25 130.05 369.87 4.22 4.22 0.30 107.63 19.75 127.68 131.90 379.88 9.37 9.37 20.94 19.82 40.76 50.13 283.30 2009 12 201.88 37.19 239.07 2010 12 201.88 46.11 247.99 2011 12 201.88 31.30 233.17 (Rupees in Millions)

Balance Sheet Growth

Rs. in million

Equity Growth
Rs. in million

400 350 300 250 200 150 100 50 0 2009 2010 2011

300 250 200 150 100 50 0 2009 2010 2011

Investment in Lease
Rs. in million
7000 6000 5000 4000 3000 2000 1000

Cost Analysis (2010-11)

Plant & Machinery Vehicles-Private Vehicles-Commer. Equipments Other

Operating expenses 74.42 Financial expenses 25.58

Revenue Analysis (2010-11)

Sector Wise Exposure (2010-11)

% %
Lease Income Mark-up Income Non interest income Other income

17.81 73.84 0.50 7.85

Education 52.46 Chemical Fertilizers & Pharmacutical 17.41 Construction 0.61 Services 25.59 Others 3.93

Income Statement
30th June Reporting Period (Months) INCOME Lease income Mark-up income Capital gain on Investment Non Interest Income Other income Total Income EXPENSES Operating Expenses Financial Expenses Prov. for Pot. Lease Losses/ Loan Prov. for Dimn. in value of Investment Total Expenses Profit/(Loss) Before Taxation Taxation Net Profit/(Loss) APPROPRIATION Dividend Reserve for Bonus Shares Statutory Reserve Other Reserve SIGNIFICANT RATIOS Book value per share (Rs.) Financial Charges / Total Expenses (%) Times interest earned (X) Earning per share (Rs.) Return on equity (%) Return on Assets (%) Debt Equity Ratio (%) Dividend Per Certificate (Rs.) Stock Dividend (%) 11.84 24.14 0.00 0.69 0.44 1.58 12.28 27.54 1.13 0.01 0.93 0.60 1.70 0.30 11.56 25.56 1.46 (0.44) (3.77) (3.10) 0.25 0.33 0.41 0.23 6.06 23.78 7.78 0.83 32.39 1.64 1.64 14.68 15.94 27.15 0.10 57.89 2.31 2.31 34.66 11.90 46.57 (8.78) (8.78) 2009 12 2010 12 2011 12 (Rupees in Millions) 6.52 6.69 6.73 30.15 27.90 (4.81) 4.00 2.01 0.19 0.16 49.52 2.97 34.03 60.20 37.78

The First IBL Modaraba Team

Dr. Hasan Sohaib Murad
Chairman & CEO Director Director

Ale Imran
Director

Mr. Arslan Khan Khakwani Mr. Shaheen Rashid

Mr. Kashif Mehmood Irshad

Chief Operating Officer Company Secretary

Mr. Sohail A. Sheikh

Commenced Business on : 22-Oct-89 Head Office : 43/1, FCC Gulberg III, Lahore. : (92-42) 35778025-7 : (92-42) 35778024 : info@firstibl.com : www.firstibl.com : Lahore & Karachi : 16 : Karachi, Lahore & Islamabad Stock Exchange : Rahman Sarfaraz Rahim Iqbal Rafiq

Company Information

Tel Fax Email Website Offices at Staff Strength Listed at Auditors

Year Book 2011

111

First Imrooz Modaraba

Mr. Naveed Riaz Chief Executive

Board of Directors Mr. Naveed Riaz CEO Mr. Ameed Riaz Director Mrs. Saadat Ikram Director Mr. Omar Mohammad Khan Director

History, Background, Principal Activities etc.

First Imrooz Modaraba was formed on 27 September 1993 under the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980 and the Rules framed thereunder and is managed by A R Management Services (Pvt.) Limited. The Modaraba issued its certificate capital to the general public on February 01, 1994 and commenced operations from March 01, 1994, the date on which the minimum subscription certificate was issued by the Registrar Modaraba.

Performance Highlights (2010-2011)

Alhamdolillah, the performance of the Modaraba during the year ended June 30, 2011 was satisfactory. After remained under pressure during the first half, owing to slowdown in the offtake of material due to flood disaster, continued energy crisis and political instability, the performance of the Modaraba has improved during the second half as sales have picked up. The Modaraba's turnover for the current year stood at Rs.681.36 million as compared to Rs.628.53 million of last year. The profit for the year was Rs. 27.57 million as compared to Rs. 28.57 million last year. The decrease in profit is mainly due to increase in tax rate at import stage. After considering these results, the Board of Directors have decided to transfer 20% profit to statutory Reserve and a final profit distribution @ 73.5% i.e Rs.7.35 per certificate to the certificate holders.

112

Year Book 2011

Balance Sheet
30th June Reporting Period (Months) EQUITY Issued,subs.& Paid-up-Capital Reserve & Retained Earning Total Equity LIABILITIES Deferred Liabilities Long Term Loan Certificate of Investment Lease Key Money Total Non-current Liabilities Current Maturity of L.T. Loan S.T. Loan & Running Finance S.T. Certificate of Investment Other Current Liabilities Total Current Liabilities Total Liabilities Total Equity and Liabilities ASSETS Tangible Fixed Assets Intangible Assets Net Investment in Lease Finance Long Term Investment Other Long Term Assets Total Non-current Assets Current Portion of Lease Finance Short-term Placement / Finance Investments Other Current Assets Cash & Bank Balances Total Current Assets Total Assets SIGNIFICANT RATIOS Net working Capital (Rs.) Capital Ratio (x) Gearing (X) Leverage Ratio (X) Current Ratio (X) Total Assets / Net Worth (X) Total Financing / Net Worth (X) Break-up Value (Rs.) Investment in Lease Finance (%) 103.89 0.55 0.82 2.35 1.82 34.17 112.30 0.50 1.01 2.07 2.01 0.07 37.39 119.48 0.37 1.71 1.63 2.71 0.29 38.98 2009 12 2010 12 2011 12 (Rupees in Millions) 30.00 30.00 30.00 72.51 82.18 86.95 102.51 112.18 116.95 6.82 6.82 76.99 76.99 83.81 186.32 5.25 0.19 5.44 0.80 132.02 48.06 180.88 186.32 8.14 8.14 7.63 97.04 104.67 112.81 224.99 7.53 0.49 8.02 1.28 208.80 6.89 216.97 224.99 8.90 8.90 33.37 157.17 190.54 199.44 316.39 6.03 0.33 6.37 1.21 291.25 17.56 310.02 316.39

Balance Sheet Growth

Rs. in million

Equity Growth
Rs. in million

350 300 250 200 150 100 50 0 2009 2010 2011

140 120 100 80 60 40 20 0 2009 2010 2011

Revenue Analysis (2010-11)

Cost Analysis (2010-11)

Trading Income Other Income

98.08 1.92

Operating expenses Financial Expenses

% 86.85

13.15

Income Statement
30th June Reporting Period (Months) INCOME Lease Income Trading Income Mark-Up Income Capital gain on Investment Non Interest Income Other income Total Income EXPENSES Operating Expenses Financial Expenses Prov. for Pot. Lease Losses/ Loan Prov. for Dimn./(appreciation) in value of Investment Total Expenses Profit Before Taxation Taxation Net Profit APPROPRIATION Dividend Reserve for Bonus Shares Statutory Reserve Other Reserve SIGNIFICANT RATIOS Book value per share (Rs.) Financial Charges / Total Expenses (%) Times interest earned (X) Earning per share (Rs.) Return on equity (%) Return on Assets (%) Debt Equity Ratio (%) Dividend Per Certificate (Rs.) Stock Dividend (%) 25.12 3.72 1.73 30.57 29.97 7.92 22.05 18.90 2.21 34.17 0.15 9.06 7.36 22.64 11.20 82.00 6.30 30.80 1.84 (0.48) 32.16 48.34 19.77 28.57 22.80 5.71 37.39 0.06 27.29 9.52 26.62 13.89 101.00 7.60 34.75 5.32 2009 12 2010 12 2011 12 (Rupees in Millions) 58.78 78.07 92.56 1.76 2.43 1.81 60.54 80.50 94.36

The First Imrooz Modaraba Team

Mr.Naveed Riaz
Chief Executive

Mrs.Rabeeaa Riaz Mr.Amjad Khalid

General Manager, Finance General Manager, Imports

Mr.Ateed Riaz
Director

Chief Financial Officer

Mr.Ameed Riaz

Mr. Shabbir Ahmed Jamsa

Company Secretary & General Manager Taxation

Commenced Business on : March 01, 1994 Head Office

Company Information

0.06 40.13 54.23 26.62 27.61 22.05 5.51 38.98 0.13 11.18 9.20 25.16 10.99 171.00 7.35

: 405, 4th Floor, Beaumont Plaza Civil Lines Qarters, Beaumont Road, Karachi. : (92-21) 111-IMROOZ : (92-21) 35 222 668 : inquiries@imrooz.com : www.firstimrooz.com : Lahore : 20 : Karachi Stock Exchange : M/s. BDO Ebrahim & Co. Chartered Accountants : Mr. Altaf, Advocate & Mr. M. Akram Zuberi & Co. Advocate

Tel Fax Email Website Offices at Staff Strength Listed at Auditors Legal Advisors

Year Book 2011

113

First National Bank Modaraba

Mr. Javaid Sadiq Chief Executive Officer

Board of Directors Mr. Shahid Anwar Khan Chairman Mr. Javiad Sadiq CEO Mr. Wajahat A. Baqai Director Mr. Khawaja Waheed Raza Director Mr. Mustafa Kamal Director Mr. Jamal Nasim Director Mr. Sadiq-ul-Huda Director

History, Background, Principal Activities etc.

First National Bank Modaraba(FNBM) is a multi purpose, perpetual and multi dimensional Modaraba floated by National Bank Modaraba Management Company Limited(NBMMCL), a wholly owned subsidiary of National Bank of Pakistan. NBMMCL was incorporated as a Public Limited Company on August 6, 1992 under companies Ordinance 1984 and registered under Modaraba Companies and Modaraba (Floatation & Control) ordinance 1980, with a paid up capital of PKS 105 Million. FNBM was floated with paid up capital of PKS 250 million and as Authorized Capital of PKS 600 million to cater to ever increasing market for Islamic Banking in the country. FNBM is primarily engaged in various Islamic mode of financing and business activities including Leasing, Morabaha and Musharaka arrangements.

CREDIT RATING Rating Short Term Medium / Long Term Rating Agency JCR- VIS A-1 (A One) A + (A Plus)

Performance Highlights (2010-2011)

During the period under review the economy remained under pressure overall. Despite faced with adverse implications on account of above, FNBM adopted an active yet cautious marketing approach. Consequently, the size of balance sheet increased by 23% as compared to the last year. the major product of the Modaraba is Ijarah finance and by the end of current year FNBM's made new ijarah investment to the tune of Rs.652 millions. FNBM's Morahaba investments also increased by 17% from Rs.717 million as on June 30, 2010 to Rs.837 million at the end of current year. the total income of the Modaraba increased by 28% from Rs.370 million in the last year to Rs.473 million in the current year. net profit increased by 16% from Rs.26.23 million to Rs.30.67 millions. increase in net profit of the Modaraba is mainly because of increase in business, slight increase in spreads, and improved operational efficiency.

114

Year Book 2011

Balance Sheet
30th June Reporting Period (Months) EQUITY Issued,subs.& Paid-up-Capital Reserve & Retained Earning Total Equity LIABILITIES Deferred Liabilities Long Term Loan Certificate of Investment Lease Key Money Total Non-Current Liabilities Current Matunity of L.T. Loan S.T. Loan & Running Finance S.T. Certificate of Investment Other Current Liabilities Total Current Liabilities Total Liabilities Total Equity and Liabilities ASSETS Tangible Fixed Assets Net Investment in Lease Finance Long Term Investment Other Long Term Assets Total Non-Current Assets Current Portion of Lease Finance Short-term Finance Investments Other Current Assets Cash & Bank Balances Total Current Assets Total Assets SIGNIFICANT RATIOS Net working Capital (Rs.) Capital Ratio (x) Gearing (X) Leverage Ratio (X) Current Ratio (X) Total Assets / Net Worth (X) Total Financing / Net Worth (X) Break-up Value (Rs.) Investment in Lease Finance (%) 1.03 8.36 (129.00) 0.20 3.70 4.30 0.88 5.30 4.69 1.33 63.00 (46.00) 0.17 4.50 6.05 0.96 6.43 4.50 13.48 51.00 209.89 565.85 182.81 1.13 959.68 534.58 757.29 21.70 123.34 13.87 1,450.77 2,410.45 421.03 254.67 60.21 1.21 737.12 316.25 598.08 1.86 102.91 5.02 1,024.12 1,761.24 727.00 124.00 50.00 2.00 903.00 165.00 848.00 2.00 241.00 8.00 1,264.00 2,167.00 47.74 421.13 120.00 122.53 711.40 562.27 726.97 53.83 67.50 1,410.57 2,121.97 2,410.45 8.10 175.00 92.95 276.05 559.34 466.73 80.47 47.11 1,153.65 1,429.70 1,761.24 2.00 312.00 79.00 127.00 520.00 440.00 665.00 121.00 84.00 1,310.00 1,830.00 2,167.00 2009 12 250.00 38.48 288.48 2010 12 250.00 81.54 331.54 2011 12 250.00 87.00 337.00 (Rupees in Millions)

Balance Sheet Growth

Rs. in million

Equity Growth
Rs. in million

3000 2500 2000 1500 1000 500 0 2009 2010 2011

400 350 300 250 200 150 100 50 0 2009 2010 2011
C

Investment in Lease
Rs. in million 450 400 350 300 250 200 150 100 50 0
Plant & Machinery Vehicles-Private Vehicles-Commer. Equipments Other

Cost Analysis (2010-11)

%
Operating expenses Financial Expenses Prov. for Pot. Lease Losses/ Loan

57.56 39.73 2.71

Revenue Analysis (2010-11)

Sector Wise Exposure (2010-11)

%
Auto & Allied Chemical, Fertilizers & Pharmaceutical Dairy & Poultry Education Electronics Energy, Fuel, Oil & Gas Transport & Communication Food, Tobacco & Beverages Sugar Finacial Sector Textile Others 5.00 1.00 2.00 1.00 2.00 2.00 1.00 2.00 16.00 10.00 36.00 22.00

%
Lease Income Mark-up Income Non Interest Income Other Income 75.74 22.36 0.21 1.69

Income Statement
30th June Reporting Period (Months) INCOME Lease income Mark-up income Capital gain on Investment Non Interest Income Other income Total Income EXPENSES Operating Expenses Financial Expenses Prov. for Pot. Lease Losses/ Loan Prov. for Dimn. in value of Investment Total Expenses Profit Before Taxation Taxation Net Profit APPROPRIATION Dividend Reserve for Bonus Shares Statutory Reserve Other Reserve SIGNIFICANT RATIOS Book value per share (Rs.) Financial Charges / Total Expenses (%) Times interest earned (X) Earning per share (Rs.) Return on equity (%) Return on Assets (%) Debt Equity Ratio (%) Dividend Per Certificate (Rs.) Stock Dividend (%) 80.00 0.43 3.74 13.27 57.00 1.22 1.05 7.90 1.48 79.00 1.00 13.48 53.00 2.00 1.22 9.20 1.40 20.00 1.00 2.16 25.00 5.00 25.00 6.00 67.82 262.53 11.34 341.69 10.78 10.78 130.65 195.19 6.42 11.56 343.82 26.23 26.23 255.00 176.00 12.00 31.00 31.00 2009 12 2010 12 2011 12 (Rupees in Millions) 224.78 239.73 359.00 126.69 123.39 106.00 (2.08) 1.39 3.08 5.54 1.00 8.00 352.47 370.05 474.00

The First National Bank Modaraba Team

Mr. Hafiz Muhammad Fayyaz Head of credit & Risk Management Mr. Abbas Azam Chief Financial Officer/ Company Secretary Mr. Akhtar Nazir Sulehri Head of Operations & Marketing Miss. Nadia Jalil Credit Manager Commenced Business on : December 03, 2003 Head Office Mr. Nusrat Rashid Head of Marketing Mr. Mubashar Naveed Finance & Instrument Head Mr. Sh. Umar Saeed Manager Accounts

Company Information

443.00

: 5th Floor, NBP RHQ Building 26 - Mc Lagon Road, Lahore. : (92-42) 99211200 : (92-42) 99213247 : info@nbmodaraba.com : www.nbmodaraba.com : Lahore : 19 : Karachi & Lahore Stock Exchanges : M/s. Horwath Hussain Chaudhury & Co. : Cornelius Lane & Mufti

Telephone Fax Email Website Offices at Staff Strength Listed at Auditors Legal Advisors

Year Book 2011

115

First Pak Modaraba

Board of Directors Mr. Abdul Hameed Khan Chairman Mr. M. Akhtar I. Pathan Director Mr. Muhammad Musharraf Khan Director

History, Background, Principal Activities etc.

First Pak Modaraba (the Modaraba) established on August 15, 1991 under the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980, under the Management of Royal Management Services (Pvt) Limite, having its registered office at Office No. 54, Ground Floor, Beverley Centre, 56-G, Blue Area, Islamabad (a company incorporated in Pakistan under the Companies Ordinance 1984), duly registered with the Registrar of Modaraba Companies and Modaraba under the Modaraba Companies and Modaraba (Floatation and Control) Ordinance 1980. The Certificates of Modaraba are listed on the Karachi, Lahore and Islamabad Stock Exchanges. The Modaraba is a multipurpose and perpetual Modaraba and is mainly engaged in the deployment of funds on Murabaha and Musharika Arrangements, Lease (Ijarah) Financing and is also conduct Trading in listed Marketable Securities.

sound financial health of the Modaraba. The Modaraba has declared a Cash Dividend of 4% for the year ended 30th June 2011.

Performance Highlights (2010-2011)

During the year ended on 30th June 2011, the Overall operating performance of the First Pak Modaraba reflects that Operating Income decreased to Rs.8.831 Million as against Rs.9.328 Million during the last year. Modaraba has earned Rs.2.211 Million capital gain on sale of investment. Operating expenses has slightly increased to Rs.4.777 Million from Rs.4.646 Million as compared to last year FY 2009-10. Further, it recorded unrealized loss on re-measurement of Investment of Rs.0.189 Million as against a loss of Rs.3.076 Million in FY 2009-10. The Net Profit of the Modaraba stands to Rs.13.432 Million as against a Profit of Rs.6.897 Million last year. The Earning per Certificate stands to Rs.1.07 during the year as against Re.0.55 during last year. The Modaraba transferred 20% of Net Profit to Statutory Reserve Fund, now the Reserve Fund reflects Rs.23.948 Million. Which indicates

116

Year Book 2011

Balance Sheet
30th June Reporting Period (Months) EQUITY Issued,subs.& Paid-up-Capital Reserve & Retained Earning Total Equity LIABILITIES Deferred Liabilities Long Term Loan Certificate of Investment Lease Key Money Total Non-current Liabilities Current Maturity of L.T. Loan S.T. Loan & Running Finance S.T. Certificate of Investment Other Current Liabilities Total Current Liabilities Total Liabilities Total Equity and Liabilities ASSETS Tangible Fixed Assets Net Investment in Lease Finance Long Term Investment Other Long Term Assets Total Non-current Assets Current Portion of Lease Finance Short Term Finance Investments Other Current Assets Cash & Bank Balances Total Current Assets Total Assets SIGNIFICANT RATIOS Net working Capital (Rs.) Capital Ratio (x) Gearing (X) Leverage Ratio (X) Current Ratio (X) Total Assets / Net Worth (X) Total Financing / Net Worth (X) Break-up Value (Rs.) Investment in Lease Finance (%) 57.30 0.93 0.08 14.56 1.08 0.05 5.12 5.09 65.36 0.92 0.08 14.17 1.08 0.02 5.29 2.05 74.86 0.93 0.07 14.60 1.08 0.02 6.06 2.06 0.12 3.27 0.04 3.43 16.16 27.36 15.72 1.53 60.77 64.20 0.19 1.47 0.04 1.71 13.84 18.36 37.75 69.96 71.68 0.14 1.69 0.13 1.96 13.37 17.31 49.29 79.97 81.93 1.32 1.32 3.47 3.47 4.79 64.21 0.76 0.76 4.60 4.60 5.36 71.68 0.83 5.11 5.11 5.94 81.93 2009 12 125.40 (65.98) 59.42 2010 12 125.40 (59.08) 66.32 2011 12 125.40 (49.42) 75.98 (Rupees in Millions)

Balance Sheet Growth

Rs. in million
90 80 70 60 50 40 30 20 10 0 2009 2010 2011 80 70 60 50 40 30 20 10 0 2009

Equity Growth
Rs. in million

2010

2011

Investment in Lease
90 80 70 60 50 40 30 20 10 0

Cost Analysis (2010-11)

Rs. in million

Plant & Machinery Vehicles-Private Vehicles-Commer.

%
Equipments Other
Operating expenses Prov. for Dimn. in value of Investment
135.05 4.09

(Reversal)/Pro. for Pot. lease losses loan (239.14)

Revenue Analysis (2010-11)

Sector Wise Exposure (2010-11)

% %
Auto & Allied Chemical Fertilizers & Pharmacutical Dairy & Poultry Energy Fuel Oil & Gas Health Care Others
5.11 3.29 32.54 3.83 13.33 41.9

Lease Income 8.72 Mark-up Income 53.68 Capital gain on Investment 25.03 Other Income 12.57

Income Statement
30th June Reporting Period (Months) INCOME Lease Income Mark-Up Income Capital gain on Investment Non Interest Income Other income Total Income EXPENSES Operating Expenses Financial Expenses (Reversal)/Pro. for Pot. lease losses loan Prov. for Dimn. in value of Investment Total Expenses Profit Before Taxation Taxation Net Profit APPROPRIATION Dividend Reserve for Bonus Shares Statutory Reserve Other Reserve SIGNIFICANT RATIOS Book value per share (Rs.) Financial Charges / Total Expenses (%) Times interest earned (X) Earning per share (Rs.) Return on Equity (%) Return on Assets (%) Debt Equity Ratio (%) Dividend Per Share (Rs.) Stock Dividend (%) 5.12 (2.67) 0.08 5.29 3.91 0.55 10.40 9.62 0.08 0.30 5.29 2.56 1.07 17.68 16.40 6.73 0.40 3.76 2.75 5.01 2.69 4.68 11.59 20.80 37.07 (33.50) (33.50) 5.41 (5.55) 3.07 2.93 6.39 (0.50) 6.89 6.28 (11.12) 0.19 (4.65) 13.48 (0.05) 13.43 2009 12 2010 12 2011 12 0.77 4.74 2.21 1.12 8.83 (Rupees in Millions) 1.53 1.00 2.44 (0.12) 4.58 1.55 0.61 1.29 3.57 9.32

The First Pak Modaraba Team

Mr. Muhammad Musharraf Khan
Company Secretary

Mr. Fayyaz Khan

Admin. Officer

Mr. Mehfooz A. Shakoor

Chief Financial Officer

Commenced Business on : 15-08-1991 Head Office : Office No.54, Beverley Centre, 56-G, Blue Area, Islamabad. : 021-32429632-35 : 021-32420015 : first.pakmodaraba@hotmail.com. : : Mehersons Estate, Block-1, Talpur Road, Karachi. : 5 : Karachi, Lahore, Islamabad. : M. Yousuf Adil Saleem & Co. Chartered Accountants : Mandviwala & Zafar Advocates

Company Information

Tel Fax Email Website Offices at Staff Strength Listed at Auditors Legal Advisors

Year Book 2011

117

First Paramount Modaraba

Mr. Abdul Ghaffar Umer CEO

Board of Directors Mr. Mian Tanveer Ahmed Magoon Chairman Mr. Abdul Ghaffar Umer Chief Executive Officer & Director Mr. Ahmed Kasssam Parekh Director Mr. Pir Mohammad Kalia Director Mr. Abdul Razzak Jangda Director Abid Aziz Director
(Nominee of Pak Libya holding Co.)

History, Background, Principal Activities etc.

Paramount Investments Limited was incorporated in the Province of Sind under the Companies Ordinance, 1984 on 15th February 1992. It was registered as a Modaraba Management Company with the Registrar of Modaraba companies and Modarabas Islamabad on 15th October 1992. The Authorized capital of Paramount Investments Limited is Rs: 50,000,000/- divided into 5,000.000/=certificates of Rs 10/- each with a paid up capital of Rs 20,075,000/-. The Principal objectives of Paramount Modaraba are as follows:1. 2. To engage in MODARABA and all other forms of Islamic ways of financing. To initiate sponsor, promote, float, organize, manage, administer and operate Modaraba Companies, Modaraba fund and Modarabas of all types and descriptions, Mutual Funds, unit trusts and other similar concerns either in syndicates or otherwise. To invest or participate in and to collaborate or co-operate with any Modaraba company Modaraba funds, Modarabas, Mutual Funds, Unit trusts and other similar concerns either in syndicates or otherwise. To arrange, procure and raise finance through Modaraba Companies, Modaraba funds, Modarabas, of all types, descriptions and durations, mutual funds units' trusts and other similar modes. To establish, manage take-over operate all sorts of commercial industrial, trading and business activities.

profitability and rate of dividend as illustrated in the following table:S.No: Category 1. 2. 3. 4. Gross Morabaha profit. 2011 2010 2009 2008 2007

29,497,723 20,711,770 23,682,441 16,804,035 9,497,606

For the year profit. 27,795,840 16,097,587 13,811,373 12,359,398 8,393,956 Profit per certificate. Rs.4.74 Rs.2.85 18% Rs.2.36 15% Rs.2.11 14% Rs.1.43 11%

Cash Dividend per certificate. 23.50%

Mr. Nadeem Iqbal Director

The earning of Rs.4.74 per Modaraba Certificate was the result of capital gain of Rs.14.83 million (net) on the disposal of Modarabas share of CNG Assets, increase in gross revenue from Morabaha financing and decrease in the cost of financing by proper and timely utilization of liquid funds received from disposal of CNG Assets, as indicated here under :2011 1) Gross revenue from Morabaha financing. 2) Financial cost. Overall net impact on profitability 2010 Difference

29,497,723 5,273,312 24,224,411

20,711,770 increased by 42% 7,602,214 decreased by 31%

13,109,556 increased by 85%

3.

CREDIT RATING Rating Short Term Medium / Long Term

A-3 BBB

4.

Rating Agency JCR VIS Credit Rating Comapny

5.

Performance Highlights (2010-2011)

The operational policies of the Board and constant endeavouring and planning of the management proved to be successful and by the Blessings of Allah, we could maintain constant growth in the gross revenue,

118

Year Book 2011

Balance Sheet
30th June Reporting Period (Months) EQUITY Issued,subs.& Paid-up-Capital Reserve & Retained Earning Total Equity LIABILITIES Deferred Liabilities Long Term Loan Certificate of Investment Lease Key Money Total Non-current Liabilities Current Maturity of L.T. Loan S.T. Loan S.T. Certificate of Investment Other Current Liabilities Total Current Liabilities Total Liabilities Total Equity and Liabilities ASSETS Tangible Fixed Assets Net Investment in Lease Finance Long Term Investment Other Long Term Assets Total Non-current Assets Current Portion of Morabaha Finance Short Term Finance Investments Other Current Assets Cash & Bank Balances Total Current Assets Total Assets SIGNIFICANT RATIOS Net working Capital (Rs.) Capital Ratio (x) Gearing (X) Leverage Ratio (X) Current Ratio (X) Total Assets / Net Worth (X) Total Financing / Net Worth (X) Break-up Value (Rs.) Investment in Lease Finance (%) 49.12 0.52 0.78 0.91 0.92 1.91 1.19 20.27 80.47 0.51 0.82 0.96 0.62 1.96 1.09 21.62 70.21 0.59 0.43 0.70 1.84 1.70 1.45 24.56 59.51 22.85 3.13 85.49 60.15 58.17 6.31 17.11 141.75 227.24 29.10 35.34 64.64 62.35 40.61 50.83 30.31 184.09 248.54 31.58 82.02 113.61 98.78 28.21 1.24 3.58 131.82 245.42 14.904 0.54 0.32 15.76 19.92 46.50 20.67 92.63 108.39 227.23 18.15 18.16 0.54 35.97 64.29 103.62 121.77 248.53 38.97 0.85 39.82 32.48 11.81 17.32 61.61 101.43 245.43 2009 12 58.63 60.21 118.84 2010 12 58.63 68.13 126.76 2011 12 58.63 85.37 144.00 (Rupees in Millions)

Balance Sheet Growth

Rs. in million

Equity Growth
160 140 120 100 80 60 40
Rs. in million

300 250 200 150 100 50 0 2009 2010 2011

20 0 2009 2010 2011

Cost Analysis (2010-11)

Operating expenses financing activities Operating expenses musharika project Financial Expenses Reversal / provision for morabaha finance Worker's Welfare Fund

% 42.00 30.00 20.00 6.00 2.00

Revenue Analysis (2010-11)

Sector Wise Exposure (2010-11)

%
Morbaha Income Profit From Musharika Projects Non Interest Income Other Income Gain from discontinued business
51.00 20.00 0.40 2.80 25.80

Chemical, Fertilizers & Pharmaceutical Engineering & Allied Construction Energy, Fuel, Oil & Gas Food, Tobacco & Beverages Paper & Board Textile Transport & Communication Others

3.00 4.00 9.00 2.00 32.00 4.00 4.00 15.00 27.00

Income Statement
30th June Reporting Period (Months) INCOME Morabaha Income Profit from Musharika Projects Capital gain on Investment Non Interest Income Other income Total Income EXPENSES Operating Expenses Financial Expenses Reversal / Provision against MF Workers Welfare Fund
Total Expenses inclu. Mod. Co Manag Fee

The First Paramount Modaraba Team

Mr. Mian Tanveer Ahmed Magoon
Chairman

2009 12

2010 12

2011 12

Mr. Abid Aziz

Director Director

(Rupees in Millions) 23.68 20.71 29.50 10.15 7.64 9.41 10.12 14.83 0.15 5.21 1.29 1.61 39.19 8.69 10.46 1.94 21.09 18.10 18.10 8.79 9.05 20.27 50.00 2.92 3.09 15.23 7.96 91.20 1.50 39.77 15.21 7.60 (0.13) 0.38 23.06 16.71 16.71 10.55 5.85 21.62 33.00 3.18 2.85 13.61 6.72 96.07 1.80 55.34 20.00 5.27 1.65 0.63 27.55

Mr. Abdul Ghaffar Umer

Director Director Director

Director / Chief Executive Officer

Mr. Nadeem Iqbal Mr. Naseemuddin Zubairi

Chief Financial Officer

Mr. Ahmed Kassam Parekh Mr. Pir Mohammad Kalia Mr. Abdul Razak Jangda

Mr. Shakil Khan

G.M. Marketing / CAD

Mr. Mazharul Haq Siidiqui

G.M Corporate Affairs

Net Profit APPROPRIATION Dividend Reserve for Bonus Shares Statutory Reserve Other Reserve SIGNIFICANT RATIOS Book value per share (Rs.) Financial Charges / Total Expenses (%) Times interest earned (X) Earning per share (Rs.) Return on Equity (%) Return on Assets (%) Debt Equity Ratio (%) Dividend Per Share (Rs.) Stock Dividend (%)

27.79 13.78 13.90 24.56 19.00 8.58 4.74 13.61 11.32 70.43 2.35

Company Information

Profit Before Taxation Taxation

27.79

Commenced Business on : January 19th 1995. Head Office : Suit No 107 108, Ist Floor PECHS Comunity Office Complex, Block 2, PECHS, Karachi. Tel : (92-21) 34381037-38-52 & 34534410 Fax : (92-21) 34534410 Email : fpm@cyber.net.pk naseemzubairi@fpm.com.pk : www.fpm.com.pk Website Offices at : Karachi Staff Strength : 13 Listed at : Karachi and Islamabad Stock Exchanges Auditors : KPMG Taseer Hadi & Co. Legal Advisors : Raja Qasit Nawaz

Year Book 2011

119

First Prudential Modaraba

Board of Directors Mr. Asad Iqbal Siddqui Director Mr. Muhammad Asif Director Mr. Fazal M. Mughal Director Mr. Ataullah Khan Director Dr. Muhammad Hussain Director

History, Background, Principal Activities

First Prudential Modaraba was floated in December 1989 as a perpetual, multi purpose Modaraba with an authorized capital of 100 million,. With effect from July 2002, Second Prudential and Third Prudential Modaraba stand amalgamated into First Prudential Modaraba thereby making it one of the largest capital based multipurpose Modaraba of Pakistan with paid up capital of Rs. 872.176 million. The objective of the Modaraba interalia include participating in Musharika, Morahaba and providing financial assistance for working capital need, leasing of all types of assets with special emphasis on vehicle and industrial machinery, including securitization of lease portfolios of leasing companies and commercial activities including syndication and leveraged leasing, underwriting public issue of shares. Modaraba's mission is to create and maintain progressive position in Modaraba sector in Pakistan endeavor to promote interest-free economy in the country.

on a very calculated manner, thus earning a net income of Rs. 5.15 million in 2011 as against an income of Rs. 5.18 million in the year 2010. Your Modaraba has also earned Rs. 37.30 million on deposit accounts maintained with different banks and Islamic Financial Institutions. During the year, Modaraba had to reversal of provisioning on account of Ijarah portfolio and other receivables amounting to Rs. 10.73 million respectively. However, your management is of the view that most of these accounts are not willful defaulters and Modaraba is pursuing them actively and is fully geared up to recover these amounts. Moreover, your management has recovered Rs. 5.34 million during the year from the non- performing portfolio.

Performance Highlights (2010-2011)

Financial Year 2011 started with an upheaval for the economy of Pakistan as the nation suffered the worst natural disaster (floods) in the entire history which resulted in relentless short and long-term consequences for our economy. The devastating July 2010 floods swept across the length and breadth of the country.The total investment has declined, gross fixed investments has decreased during last year. On the other hand, national savings notched up above total investments for the first time in the last five years. Despite all that, your Modaraba has performed well and managed to post a net profit of Rs. 33.26 million as against a profit of Rs. 33.29 million during the last year. Keeping in view the adverse economic indicators, your management adopted strict credit policies and conservative approach for fresh disbursement. Similarly, trading in the stock market was done

120

Year Book 2011

Balance Sheet
30th June Reporting Period (Months) EQUITY Issued,Subs.& Paid-up-Capital Reserve & Retained Earning Total Equity LIABILITIES Deferred Liabilities Long Term Loan Certificate of Investment Lease Key Money Total Non-current Liabilities Current Maturity of L.T. Loan S.T. Loan & Running Finance S.T. Certificate of Investment Other Current Liabilities Total Current Liabilities Total Liabilities Total Equity and Liabilities ASSETS Tangible Fixed Assets Intangible Assets Ijarah Assets Long Term Investment Other Long Term Assets Total Non-current Assets Current Portion of lease Finance Short Term Morahaba/Musharika Investments Other Current Assets Cash & Bank Balances Total Current Assets Total Assets SIGNIFICANT RATIOS Net working Capital (Rs.) Capital Ratio (x) Gearing (X) Leverage Ratio (X) Current Ratio (X) Total Assets / Net Worth (X) Total Financing / Net Worth (X) Break-up Value (Rs.) Investment in Lease Finance (%) 5.43 1.23 44.55 0.28 0.03 9.64 1.13 0.26 5.78 15.00 438.12 0.90 0.05 19.48 1.12 0.19 5.88 12.00 2009 12 2010 12 2011 12 (Rupees in Millions) 872.18 872.18 872.18 (400.12) (366.69) (359.18) 472.06 505.49 513.00 29.37 29.37 40.84 39.46 80.30 109.67 581.73 117.13 1.08 11.90 7.29 8.40 145.79 30.61 98.27 128.43 187.67 435.93 581.73 48.17 48.17 15.45 15.45 63.62 569.11 10.21 22.33 85.18 7.28 14.60 139.60 73.43 36.91 288.56 429.51 569.11 35.39 35.39 23.74 23.74 59.13 572.12 10.34 22.33 66.19 6.64 4.15 109.64 28.75 95.18 43.79 294.76 462.48 572.12

Balance Sheet Growth

Rs. in million

Equity Growth
600 500 400 300 200 100
Rs. in million

700 600 500 400 300 200 100 0 2009 2010 2011

2009

2010

2011

Investment in Lease
Rs. in million 50 45 40 35 30 25 20 15 10 5 0
Plant & Machinery Vehicles-Private Vehicles-Commer. Equipments Other

Cost Analysis (2010-11)

Operating expenses

100.00

Revenue Analysis (2010-11)

Sector Wise Exposure (2010-11)

% %
Lease Income Mark-Up on Bank Deposits Capital gain on Investment Non Interest Income Other income

Income Statement
30th June Reporting Period (Months) INCOME Lease Income Mark-Up on Bank Deposits Capital gain on Investment Non Interest Income Other income Total Income EXPENSES Operating Expenses Financial Expenses Prov. for Pot. Lease Losses/Loan Prov. for Dimn. in value of investment Total Expenses Profit Before Taxation Taxation reversal Net Profit 70.31 0.11 64.04 85.11 220.25 (103.25) 0.46 (103.71) 52.95 0.04 1.73 1.60 56.32 32.84 (0.46) 33.30 3.00 120.24 5.78 8.00 769.89 0.38 6.59 5.85 6.59 0.30 47.25 47.25 33.27 33.27 26.17 126.90 5.88 0.38 6.49 5.82 6.49 0.30 2009 12 2010 12 2011 12 (Rupees in Millions) 73.09 33.41 32.19 13.37 30.84 37.31 (9.09) 6.78 1.54 4.74 3.42 6.15 34.89 14.71 3.33 117.00 89.16 80.52

39.98 46.34 1.91 7.64 4.13

Chemical Fertilizer & Pharmaceutical Construction Consumer Facilities Energy, Fuel, Oil & Gas Financial Sector Others

11.52 6.80 9.0 30.60 0.97 41.11

The First Prudential Modaraba Team

Syed Imran Ali
Chief Financial Officer

Mr. Khalid Hussain

Manager Administration

Mr. Muhammad Musharraf Khan

Company Secretary

Commenced Business on : December 04,1989 Head Office : Suit No, 54, Ground Floor Baverly Center, 56-G, Blue Area, Islamabad. : (92-51) 2825343, 2814000 2825343 : 2814000 : info@firstprudentialmodaraba.com : : Karachi & Islamabad : 17 : Karachi, Lahore & Islamabad Stock Exchanges : M/s M. Yousuf Adil Saleem & Company Chartered Accountants : Mandviwalla & Zafar, Advocates

Company Information

Tel Fax Email Website Offices at Staff Strength Listed at Auditors

APPROPRIATION Dividend (103.72) Reserve for Bonus Shares Statutory Reserve Other Reserve SIGNIFICANT RATIOS Book value per share (Rs.) Financial Charges / Total Expenses (%) Times interest earned (X) Earning per share (Rs.) Return on Equity (%) (2197.00) Return on Assets (%) Debt Equity Ratio (%) Dividend Per Share (Rs.) Stock Dividend (%)

Legal Advisors

Year Book 2011

121

First Punjab Modaraba

Khaqan Hasnain Ibrahim CEO

Board of Directors Mr. Khalid Siddiq Tirmizey Chairman Mr. Khaqan Hasnain Ibrahim CEO Mr. Mujahid Eshai Director Mr. Nadeem Amir Director

History, Background, Principal Activities etc.

First Punjab Modaraba commenced its operations on December 23, 1992. FPM is a multi-purpose, perpetual modaraba fromed under the Modaraba Companies and Modaraba (Flotation and Control) Ordinance, 1980 and the rules framed there under. It is managed by Punjab Modaraba Service Private Limited) (wholly owned subsidiary of The Bank of Punjab). The Modaraba certificate are listedon all the stock exchanges in Pakistan. FPM's principal business activities encompass providing modaraba, musharika finances, Ijarah finances, purchase and sale of shares / securities and related business in accordance with the injuction of Islam. The Board of Director and management include senior bankers having foreign as well as domestic banking experience.

Witin the constraints of limited liquidity, fresh credit of Rs. 580 million was extended to keep the lending portfolio at a reasonable level, Credit appraisals were carried out iwth extra caution and rigor to achieve booking of quality assets, given the impaired repayment capacity of business. Despite liquidity constrains and rising profit rates, especially for marginal players in the financial sector, the Modaraba managed to keep its financial cost to acceptable level.

Performance Highlights (2010-2011)

During the year under review, national economy experienced the stress fo stagflation in the backdrop fo recession in US and EU economics, our countrys primary destinations for exports. Widespread floods in one-fifth of prime agricultural land led to diversion of resources, while acute power crisis caused a serious setback to the manufacturing sector with industrial growth recorded at a negative 0.1%. High government borrowing from the banking sector at good rates left little for the private sector and rising NPLs discouraged the banks to lend to the private sector. The debt servicing capacity of Modarabas several culstomers was also adversely affected. More significantly, however, the ageing fo the old NPLs reach a stage where heavy provisioning (Rs. 87.44 million, 206.71%) higher than last year) had to be made. this single factor ate up the Operating Profit and caused a Net Loss of Rs. 70.18 million.

122

Year Book 2011

Balance Sheet
30th June Reporting Period (Months) EQUITY Issued,subs.& Paid-up-Capital Reserve & Retained Earning Total Equity LIABILITIES Deferred Liabilities Long Term Loan Certificate of Investment-Long Term Securiy Deposits Total Non-current Liabilities Current Maturity of L.T. Loan S.T. Loan & Running Finance S.T. Certificate of Investment Other Current Liabilities Total Current Liabilities Total Liabilities Total Equity and Liabilities ASSETS Tangible Fixed Assets Net Investment in Lease Finance Long Term Finance Other Long Term Assets Total Non-current Assets Current Port. of Long Term Finance Short Term Finance Investments Other Current Assets Cash & Bank Balances Total Current Assets Total Assets SIGNIFICANT RATIOS Net working Capital (Rs.) Capital Ratio (x) Gearing (X) Debt Ratio (X) Current Ratio (X) Total Assets / Net Worth (X) Total Financing / Net Worth (X) Break-up Value (Rs.) Investment in Ijarah Finance (%) (5.17) 0.12 8.39 7.71 1.00 8.39 7.29 10.67 46.48 0.14 7.20 6.63 1.04 7.20 3.91 10.88 793.00 0.11 3.09 8.27 0.63 8.87 6.60 8.71 45.17 1,688.88 38.03 0.13 1,727.04 16.81 958.38 58.74 258.64 26.43 1,319.00 3,046.04 1,502.35 19.55 0.17 1,522.07 27.62 684.74 388.42 42.25 1,143.03 2,665.10 11.12 1,187.33 38.72 46.69 1,283.86 52.61 677.41 432.06 182.41 1,344.49 2,628.36 26.46 1,012.68 80.85 245.78 1,358.88 134.20 472.09 569.77 148.10 1,324.17 2,683.05 3,046.04 19.24 885.04 213.40 1,198.52 100.00 262.00 609.99 124.47 1,096.55 2,295.07 2,665.10 11.75 7.20 175.46 194.41 188.44 878.48 963.06 107.11 2,137.49 2,628.35 2009 12 340.20 22.80 363.00 2010 12 340.20 29.83 370.03 2011 12 340.20 43.75 296.45 (Rupees in Millions)

Balance Sheet Growth

Rs. in million

Equity Growth
400 350 300 250 200 150 100 50
Rs. in million

3500 3000 2500 2000 1500 1000 500 0 2009 2010 2011

2009

2010

2011

Investment in Lease
Rs. in million
1000000 900000 800000 700000 600000 500000 400000 300000 200000 100000 0

Cost Analysis (2010-11)

Plant & Machinery Vehicles-Private Vehicles-Commer. Equipments Other

Operating expenses Financial expenses Provision for potential lease losses / loan

61.14 29.38 9.48

Revenue Analysis (2010-11)

Sector Wise Exposure (2010-11)

% Bank & NBFI's 0.57 Textile Spinning and Composite 14.54 Sugar and Allied 16.8 Electric Goods 3.55 Chemical and Pharmaceuticals 9.22 Paper and Board 2.73 Food and Allied 7.06 Individuals 6.15 Jute 1.49 Oil and Gas 1.87 Miscellaneous 14.78 Aviation and transport 0.76 Engineering Steel & Construction 19.68 Cement 0.80

Lease Income Mark-up Income Other Income

91.2 6.37 2.43

Income Statement
30th June Reporting Period (Months) INCOME Ijarah Income Profit on Morabaha & Musharika Capital Gain on Investment Non Interest Income Other income Total Income EXPENSES Operating Expenses Financial Expenses Prov. for Pot. Ijarah losses/loan Prov. for Dimn. in value of Investment Total Expenses Profit Before Taxation Taxation Net Profit APPROPRIATION Dividend Reserve for Bonus Certificate Statutory Reserve Other Reserve SIGNIFICANT RATIOS Book value per Certificate (Rs.) Financial Charges / Total Expenses (%) Times interest earned (X) Earning per Share (Rs.) Return on Equity (%) Return on Assets (%) Debt Equity Ratio (%) Dividend per share (Rs.) Stock Dividend (%) 10.67 33.78 0.17 (2.67) (25.02) (2.98) 613.91 10.88 29.46 2.10 0.21 0.21 0.26 610.58 0.87 29.33 1.06 (2.06) 23.68 (2.67) 623.63 24.13 383.68 23.01 59.37 1,218.29 (90.83) (90.83) 26.65 281.01 28.51 983.23 7.03 7.03 565.98 270.99 87.44 923.98 70.18 70.18 2009 12 2010 12 2011 12 (Rupees in Millions) 937.22 848.95 777.27 156.57 63.70 54.26 0.74 19.02 7.04 8.09 25.82 50.51 22.20 1,127.46 990.27 853.73

The First Punjab Modaraba Team

Mr. Khaqan Hasnain Ibrahim
Chief Executive

Ch. Muhammad Asghar Mr. Nasrullah Khan

Head of Internal Audit

Mr. Mudassar Kaiser Pal

Company Secretary and CFO Head Liability

Head of Legal Affairs and SAM Head of Credit Administrative

Mr. Razi-ud-Din Faiz Safdar Mr. Muhammad Siddiq

Country Business Head - Acting

Mr. Muhammad Mustafa Mr. Zafar Iqbal

Credit & Risk Manager

Commenced Business on : 23 Dec,1992 Head Office : 233-A, New Muslim Town, Lahore : (92-42) 35865032-37 : (92-42) 35865038-39 : info@punjabmodaraba.com.pk : www.punjabmodaraba.com.pk : Nil : 28 : Karachi Stock Exchange, Islamabad Stock Exchange Lahore Stock Exchange : M/s KPMG Taseer Hadi & Co.

Company Information

Tel Fax Email Website Offices at Staff Strength Listed at

Auditors

Year Book 2011

123

First Treet Manufacturing Modaraba

Syed Shahid Ali Chief Executive Officer

Board of Directors Syed Shahid Ali CEO Syed Sheharyar Ali Director Muhammad Shafique Anjum Director Shahid Zia Director

History, Background, Principal Activities etc.

First Treet Manufacturing Modaraba (FTMM) is multipurpose Modaraba for indefinite period formed on July 27, 2005 and is managed by Global Econo Trade (Private) Limited (a wholly owned subsidiary of Treet Corporation Limited). Currently Modaraba is engaged in following activities: a. b. c. Manufacturing and selling of corrugated packaging Manufacturing and selling of paper & board Manufacturing of soaps

Performance Highlights (2010-2011)

Rs. in 000 Sales (net) Net Profit / (Loss) Earnings /(Loss) per Certificate Transfer to Statutory Reserve (50%) Book Value per Certificate 2010-2011 2009-2010 % Change 1,790,217 1,476,843 21.22% 123,228 48,516 153.99% 1.70 61,614 10.98 0.96 24,258 9.54 77.08% 153.99% 15.09%

FTMM has performed quite well as compared to last year despite all challenges and problems (e.g. power outages, dismal law and order position, high inflation, falling private investments (and growth) etc. But the management of the Modaraba is well aware of the posed challenges and is deploying most feasible marketing mix at trade and retail levels and is taking all possible measures to meet these challenges.

124

Year Book 2011

Balance Sheet
30th June Reporting Period (Months) EQUITY Issued,subs.& Paid-up-Capital Reserve & Retained Earning Total Equity LIABILITIES Deferred Liabilities Long Term Loan Certificate of Investment Other Leased Liabilities Total Non-current Liabilities Current Maturity of L.T. Loan S.T. Loan & Running Finance S.T. Certificate of Investment Other Current Liabilities Total Current Liabilities Total Liabilities Total Equity and Liabilities ASSETS Tangible Fixed Assets Net Investment in Lease Finance Long Term Investment Other Long Term Assets Total Non-current Assets Current Portion of lease Finance Short Term Finance Investments Other Current Assets Cash & Bank Balances Total Current Assets Total Assets SIGNIFICANT RATIOS Net working Capital (Rs.) Capital Ratio (x) Gearing (X) Leverage Ratio (X) Current Ratio (X) Total Assets / Net Worth (X) Total Financing / Net Worth (X) Break-up Value (Rs.) Investment in Lease Finance (%) 198.25 0.57 0.76 1.61 1.76 0.70 8.57 344.81 0.50 0.43 0.99 2.30 1.99 0.42 9.54 982.25 0.61 0.52 0.63 11.52 1.63 0.39 10.98 230.00 0.04 230.04 460.96 64.78 525.74 755.78 323.70 11.91 335.61 573.77 38.63 612.40 948.01 341.56 11.49 353.05 1,016.83 58.76 1,075.59 1,428.64 300.00 27.50 327.50 327.50 755.78 206.69 206.69 200.00 64.52 264.52 471.21 948.01 457.11 457.11 93.34 93.34 550.45 1,428.64 2009 12 500.00 (71.72) 428.28 2010 12 500.00 (23.20) 476.80 2011 12 800.00 78.19 878.19 (Rupees in Millions)

Balance Sheet Growth

Rs. in million

Equity Growth
Rs. in million

1600 1400 1200 1000 800 600 400 200 0 2009 2010 2011

1000 900 800 700 600 500 400 300 200 100 0 2009 2010 2011

Revenue Analysis (2010-11)

Cost Analysis (2010-11)

Other Income 100.00

Operating expenses Financial Expenses

% 99.52
0.48

The First Treet Manufacturing Modaraba Team

Syed Shahid Ali
Chief Executive Officer

Income Statement
30th June Reporting Period (Months) INCOME Lease Income Mark-Up Income Capital gain on Investment Non Interest Income Other income Total Income EXPENSES Operating Expenses Financial Expenses Prov. for Pot. Lease Losses/Loan Prov. for Dimn. in value of investment Total Expenses (Loss)/Profit Before Taxation Taxation Net (Loss)/Profit APPROPRIATION Dividend Reserve for Bonus Shares Statutory Reserve Other Reserve SIGNIFICANT RATIOS Book value per share (Rs.) Financial Charges / Total Expenses (%) Times interest earned (X) Earning per share (Rs.) Return on equity (%) Return on Assets (%) Debt Equity Ratio (%) Dividend Per Share (Rs.) Stock Dividend (%) 8.56 3.97 (0.38) (1.39) (9.46) (5.36) 76.00 9.54 2.34 2.44 0.96 10.18 5.12 99.00 0.27 10.98 1.54 16.53 1.70 14.03 8.63 52.05 0.69 21.84 24.26 55.52 85.87 710.92 29.36 740.28 (40.51) (40.51) 1,402.57 33.60 1,436.17 48.52 48.52 1,665.44 7.94 1,673.37 123.23 123.23 2009 12 2010 12 2011 12 (Rupees in Millions) 699.77 1,484.68 1,966.60 699.77 1,484.68 1,796.60

Mr. Sohail Habib

Chief Accountant-Modaraba Company

Syed Sheharyar Ali

Director Director Director

Mr. Sajjad Haider Khan Mr. Ayaz Ahmed

Company Secretary

Chief Accountant-Modaraba

Mr. Muhammad Shafique Anjum Mr. Shahid Zia

Commenced Business on : 27th July-2005 Head Office : 72-B, Industrial Area, Kot Lakhpat, Lahore : 042-35830881, 35156567, 35215646 : 042-35114127, 35836770 : info@packsol.com.pk : www.packsol.com.pk : 72-B, Industrial Area, Kot Lakhpat, Lahore : Completely Outsourced : Lahore Stock Exchange (Guarantee) Limited : KPMG Taseer Hadi & Co. : Salim & Baig Advocates

Company Information

Tel Fax Email Website Offices at Staff Strength Listed at Auditors Legal Advisors

Year Book 2011

125

First Tri-Star Modaraba

Mr. M. Ahmad Ismail CEO

Board of Directors Mr. Mohammad Ahmad Ismail Chairman Mr. Mohammad Ahmad Ismail CEO Mr. Rashid Ahmad Director Mr. Tahir Ahmad Director Mr. Asad Ahmad Director

History, Background, Principal Activities etc.

First Tri-Star Modaraba was formed under the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980 and the Rules framed thereunder and is managed by A.R.T. Modaraba Management (Pvt) Ltd. The Modaraba is a perpetual, multipurpose, multidimensional Modaraba and is primarily engaged in leasing of Plant and Machinery, Motor Vehicles (both commercial and private), Computer etc., providing finance on Morabaha and Musharika arrangement, purchases and sales of marketable securities and trading of various items.

Performance Highlights (2010-2011)

During the year the economy of the country was drastically down as compared with the performance last year. During last year, the country missed its major economic targets including food inflation, large scale manufacturing and current account deficit, exports and private sector credit. This year the story is no different and rising inflation, depreciating value of Pak Rupee and both global and domestic economic meltdown has shattered the economy of the country. The State Bank of Pakistan has failed to control the situation despite maintaining tight monetary policy. The maintenance of law and order is the biggest challenge our country is facing today which is aggravating day by day and unless and until the situation is controlled it would not be possible to make any progress. First Tri-Star Modaraba is in the process of completing all the formalities required for setting up a 110 MW power plant at Hawksbay, Karachi.

126

Year Book 2011

Balance Sheet
30th June Reporting Period (Months) EQUITY Issued,subs.& Paid-up-Capital Reserve & Retained Earning Total Equity LIABILITIES Deferred Liabilities Long Term loans Certificate of investments Lease key Money Total Non-current liabilities Current Maturity of L.T. Loan Short term loans and running finance Short term certificates of investment Other current liabilities Total Current Liabilities Total Liabilities Total Equity and Liabilities ASSETS Tangible Fixed Assets Net Investment in lease Finance Long-term Investment Other Long-term Assets Total Non-current Assets Current Portion of Lease Finance Short-term Finance Investments Other Current Assets Cash & Bank Balances Total Current Assets Total Assets SIGNIFICANT RATIOS Net Working capital (Rs.) Capital Ratio (X) Gearing (X) Leverage Ratio (X) Current Ratio (X) Total Assets / net worth (X) Total financing / net worth (X) Break-up Value (Rs.) Investment in Lease Finance (%)

Balance Sheet Growth

2009 12 211.63 (17.74) 193.89 22.47 22.47 22.47 216.36 0.27 80.42 80.69 1.01 2.91 131.58 0.11 135.61 216.30 2010 12 211.63 (21.35) 190.28 70.77 70.77 70.77 261.05 0.24 79.18 4.42 83.84 2.15 173.37 1.69 177.21 261.05 2011 12 211.63 (22.32) 189.31 78.16 78.16 78.16 267.47 0.33 79.17 1.54 81.04 2.73 182.57 1.13 186.43 267.47 70.78 41.29 238.52
%

Equity Growth
Rs. in million

Rs. in million

300 250 200 150 100 50 0 2009 2010 2011

250 200 150 100 50 0

(Rupees in Millions)

2009

2010

2011

Cost Analysis (2010-11)

Revenue Analysis (2010-11)

Operating Expenses

100.00

Other Income

100.00

Income Statement
30th June Reporting Period (Months) INCOME Lease income Mark up income Capital gain on investment Non interest income Other income Total Income EXPENSES Operating Expenses Financial expenses Prov. for pot. lease losses/loan Prov. for dimin. in value of investment Total Expenses Profit before taxation Taxation Net Profit APPROPRIATION Dividend Reserve for bonus share Statutory reserve Other Reserves SIGNIFICANT RATIOS Book value per share (Rs.) Financial charges/Total expenses (%) Times interest earned (X) Earning per share (Rs.) Return on Equity (%) Return on Assets (%) Debt equity ratio Dividend per share (Rs.) Stock dividend

The First Tri-Star Modaraba Team

Mr. Mohammad Ahmad Ismail
Chairman/Chief Executive

2009 12 16.30 16.30 5.03 5.03 11.26 11.26

2010 12 12.49 12.49 4.48 4.48 8.01 8.01 1.60

2011 12 2.56 2.56 4.09 4.09 (1.53) (0.07)

Mr. Tahir Ahmad

Director Director

(Rupees in Millions)

Mr. Rashid Ahmad

Director

Mr. Asad Ahmad

Commenced Business on : 01.01.1991 Head Office : F/498, S.I.T.E., Karachi-75700 : (021) 32571598, 32569695 : (021) 32563872 : modaraba@tristar.com.pk : F/498, S.I.T.E., Karachi-75700 : Karachi Stock Exchange (G) Ltd. Lahore Stock Exchange (G) Ltd. Auditors : Muniff Ziauddin Junaidy & Company Legal Advisors : M/s. Abid S. Zuberi & Associates

Company Information

Tel Fax Email Offices at Listed at

Year Book 2011

127

First UDL Modaraba

Mr. A. W. Rahi Managing Director

Board of Directors Mr. Rashid Abdulla Chairman & Director Syed Nasir Raza CEO Mr. Asad Abdulla Director Mr. A. W. Rahi Managing Director

History, Background, Principal Activities etc.

First UDL Modaraba (the Modaraba) was formed in 1991 under the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980 and the Rules framed there under, having its registered office at 1st floor, N.I.C. Building, Abbasi Shaheed Road, off Shahrah-e-Faisal, Karachi and is managed by UDL Modaraba Management (Private) Limited, a company incorporated in Pakistan. It is a perpetual, multipurpose and multidimensional Modaraba and is engaged in providing finance on Murabaha and Musharaka arrangements, Ijarah, commodity trading and trading in listed and non-interest bearing securities. The Modaraba is listed on Karachi, Islamabad and Lahore Stock Exchanges.

year, which has now accumulated to Rs. 183.42 million as compared to Rs. 161.537 million at the end of preceding year. Based on above and in the wake of adverse economic conditions prevailing globally and more so in the country, the Modarabas performance is considered highly satisfactory by the management and one of the best in Modaraba and Leasing Sector.

Performance Highlights (2010-2011)

The Modarabas profitability, during the year under review, has further improved to Rs.73. million, resulting in an earning of Rs. 2.77 per certificate, as compared to Rs. 1.92 last year, after making all the due provisions and the Management fee. As to the strategic decision taken last year, the management is concentrating more on the Ijarah activity, while other core activities i.e. Musharika financing and Investment portfolio are also receiving their due attention. As a result, the Modaraba has posted improved profitability in all the three core activities pursued by it with prudence and conservative credit approach, during the year under review. The higher profitability has enabled the Modaraba to distribute an interim dividend @7.50% in the month of February and now a final dividend of 10.00%, aggregating 17.50% (or Rs. 1.75 per certificate). This is a record distribution of profits by the Modaraba to its certificate holders. Furthermore, with a view to strengthening the financial base, the Modaraba continues to build its Statutory Reserves out of the profits every

128

Year Book 2011

Balance Sheet
30th June Reporting Period (Months) EQUITY Issued,subs.& Paid-up-Capital Reserve & Retained Earning Total Equity LIABILITIES Deferred Liabilities Long Security Deposits Total Non-current Liabilities Current Maturity of L.T. Sec. Deposits Other Current Liabilities Total Current Liabilities Total Liabilities Total Equity and Liabilities ASSETS Tangible Fixed Assets Net Investment in Lease Finance Long Term Investment Other Long Term Assets Total Non-current Assets Musharika Investments Other Current Assets Cash & Bank Balances Total Current Assets Total Assets SIGNIFICANT RATIOS Net working Capital (Rs.) Current Ratio (X) Total Assets / Net Worth (X) Break-up Value (Rs.) Investment in Lease Finance (%) 450.33 11.28 1.36 17.07 17.28 475.16 11.12 1.34 18.00 19.60 494.66 13.30 1.33 18.75 21.51 1.18 106.10 72.64 0.07 180.00 330.66 9.91 33.65 59.74 433.96 613.96 2.71 93.51 87.20 0.07 183.49 327.68 16.85 50.93 61.34 456.80 640.29 8.80 141.98 42.22 0.07 193.07 157.62 41.00 17.39 250.85 466.86 659.93 104.95 20.21 125.16 7.25 31.22 38.47 163.63 613.96 105.17 18.79 123.96 7.01 34.16 41.17 165.13 640.29 105.47 24.53 130.00 9.52 25.75 35.27 165.27 659.93 2009 12 2010 12 2011 12 (Rupees in Millions) 263.87 186.46 450.33 263.87 211.29 475.16 263.87 230.79 494.66

Balance Sheet Growth

Rs. in million
700 600 500 400 300 200 100 0 2009 2010 2011 600 500 400 300 200 100 0

Equity Growth
Rs. in million

2009

2010

2011

Investment in Lease
120 100 80 60 40 20 0
Plant & Machinery Vehicles-Private Vehicles-Commer. Equipments

Cost Analysis (2010-11)

%
86.32 Financial Expenses 0.01 Management Fee 11.18 Provision for Diminution in Value 2.49
Operating Expenses

Revenue Analysis (2010-11)

Sector Wise Exposure (2010-11)

%
Lease Income Musharika Income Capital gain on Investment Non Interest Income Other income

39.71 32.69 21.82 0.76 5.02

Modaraba 4.00 Trading & Distribution 7.00 Investment Companies 19.00 Chemicals & Pharmaceuticals 3.00 Food & Beverages 7.00 Individuals 22.00 Miscelleneous 38.00

First UDL Modaraba Team

Mr. Rashid Abdulla
Director

Income Statement
30th June Reporting Period (Months) INCOME Lease Income Musharika Income Capital gain on Investment Non Interest Income Other income Total Income EXPENSES 2009 12 2010 12 2011 12 (Rupees in Millions) 42.51 54.25 58.14 26.71 44.09 47.87 0.36 0.55 31.95 0.07 1.12 20.52 7.06 7.33 90.17 105.95 146.41

Mr. A.W. Rahi

Managing Director

Mr. Asad Abdulla

Director

Mr. Shuja Malik

Director Operations

Syed Nasir Raza

Chief Executive

Syed Aamir Hussain

C.F.O & Company Secretary

Commenced Business on : May-91 Head Office : 8th Floor, NIC Building Abbasi Shaheed Road Off. Shahrah-e-Faisal, Karachi. : (92-21) 35635501-04 : (92-21) 35635505 : info@udlmodaraba.com : www.udlmodaraba.com : 8th Floor, NIC Building Abbasi Shaheed Road Off. Shahrah-e-Faisal, Karachi. : 17 : Karachi Stock Exchange Lahore Stock Exchange Islamabad Stock Exchange : Avais Hyder Liaquat Nauman Chartered Accountants : Mohsin Tayebaly & Co.

Company Information

Operating Expenses Financial Expenses Management Fee Provision for Diminution in Value Total Expenses Profit Before Taxation Taxation Net Profit APPROPRIATION Dividend Statutory Reserve SIGNIFICANT RATIOS Earning per Certificate (Rs.) Return on equity (%) Dividend Per Certificate (Rs.) Dividend Payout (%) Market Price as on June 30, 2011

33.56 4.10 15.42 53.08 37.09 37.09

49.55 5.64 55.19 50.76 50.76

62.99 0.01 8.16 1.81 72.97 73.44 0.48 72.96

Tel Fax Email Website Offices at Staff Strength Listed at Auditors Legal Advisors

26.39 18.55

26.39 15.23

46.18 21.89

1.41 8.24 1.00 71.14

1.92 10.68 1.25 64.97

2.77 14.75 1.75 63.29 7.25

Year Book 2011

129

Grays Leasing Limited

Mr. Muhammad Tahir But Chief Executive Officer

Board of Directors Mr. Khawar Anwar Khawaja Chairman Mr. Muhammad Tahir Butt CEO Mr. Neil Douglas James Gray Director Mr. Khurram Anwar Khwaja Director Mr. Khawaja Zaka-ud-Din Director Mr. Abdul Rashid Mir Director Mr. Omer Khawar Khawaja Director

History, Background, Principal Activities etc.

Grays Leaing Limited is a Public Limited Company incorporated in Pakistan under The Compnies Ordinance 1984 on 31 August 1995. The Company shares are listed on Karachi Stock Exchange and Lahore Stock Exchange. The Company engaged in Leasing Business, It has been classifies as a non-banking financial companies (NBFC) its registered office at 701A 7th Floor, City Towers, Main Boulevard, Gulberg II, Lahore.

Performance Highlights (2010-2011)

During the year under review, the company did not transect any business as compared to Rupees 6.241 million last year. Gross investment in finance leases as at 30 June 2011 stands at Rupees 630.428 million against Rupees 828.821 million on June 30, 2010 while the net investment stands at Rupees 547.058 million on 30 June 2011 against Rupees 771.605 million of the last year. The gross revenue from operations was Rupees 30.610 million (Rupees 66.420 million in 2010). The net loss befor and after tax for the current year is Rupees 42.506 million and Rupees 44.170 million as compaired to prededing year which was Rupees 118.232 million and Rupees 101.478 million respectively. CREDIT RATING Rating Short Term BB- (Double B Minus) Medium / Long Term B (Single B) Rating Agency JCR-VIS Credit Rating Company Limited

130

Year Book 2011

Balance Sheet
30th June Reporting Period (Months) EQUITY Issued,subs.& Paid-up-Capital Reserve & Retained Earning Total Equity LIABILITIES Deferred Liabilities Long Term loans Certificate of investments Lease key Money Total Non-current liabilities Current Maturity of L.T. Loan Short term loans and running finance Short term certificates of investment Other current liabilities Total Current Liabilities Total Liabilities Total Equity and Liabilities ASSETS Tangible Fixed Assets Net Investment in lease Finance Long-term Investment Other Long-term Assets Total Non-current Assets Current Portion of Lease Finance Short-term Finance Investments Other Current Assets Cash & Bank Balances Total Current Assets Total Assets SIGNIFICANT RATIOS Net Working capital (Rs.) Capital Ratio (X) Gearing (X) Leverage Ratio (X) Current Ratio (X) Total Assets / net worth (X) Total financing / net worth (X) Break-up Value (Rs.) Investment in Lease Finance (%)

Balance Sheet Growth

Rs. in million

Rs. in million
300 250 200 150 100 50

Equity Growth

2009 12 215.00 6.08 221.08 22.02 295.28 1.50 382.51 701.31 73.65 40.50 36.64 150.79 852.10 1,073.18 89.37 952.79 10.18 0.98 1,053.32 3.64 16.24 19.88 1,073.20 (130.91) 0.21 67.30 2.12 0.13 1.80 4.31 10.28 88.78

2010 12 215.00 (95.40) 119.60 4.53 107.16 300.69 412.38 82.93 40.00 19.31 142.24 554.62 674.22 65.67 580.15 10.18 0.51 656.52 3.68 14.08 17.76 674.28 (124.54) 0.18 69.00 5.12 0.12 5.63 1.93 5.56 86.05

2011 12 215.00 (140.00) 75.00 219.00 12.00 68.00 14.00 313.00 388.00 15.00 358.00 0.34 373.34 14.66 388.00 75.40 0.19 1.07 1.23 0.16 5.10 1.10 3.50 92.00

1600 1400 1200 1000 800 600 400 200 0 2009 2010 2011

(Rupees in Millions)

2009

2010

2011

Investment in Lease
Rs. in million 500 450 400 350 300 250 200 150 100 50 0

Cost Analysis (2010-11)

Plant & Machinery Vehicles-Private Vehicles-Commer. Equipments Other

%

Operating expenses Financial expenses Prov. for pot. lease losses/loan

28.18 38.44 33.38

Revenue Analysis (2010-11)

Sector Wise Exposure (2010-11)

%
Cement Chemical, fertilizers & pharmaceuticals Constructions Energy, Fuel, Oil & Gas Engineering & Allied (Steel, Engineering and Automobile) Food, Tobacco & Beverages Services Sugar and Allied Textile and Allied Transport & Communication Other

3.6 5.78 1.73 9.81 2.25 3.27 2.57 4.58 29.8 14.91 21.7

Lease Income Other income

83.99 16.01

Income Statement
30th June Reporting Period (Months) INCOME Lease income Mark up income Capital gain on investment Non interest income Other income Total Income EXPENSES Operating Expenses Financial expenses Prov. for pot. lease losses/loan Prov. for dimin. in value of investment Total Expenses Profit before taxation Taxation Net Profit APPROPRIATION Dividend Reserve for bonus share Statutory reserve Other Reserves SIGNIFICANT RATIOS Book value per share (Rs.) Financial charges/Total expenses (%) Times interest earned (X) Earning per share (Rs.) Return on Equity (%) Return on Assets (%) Debt equity ratio Dividend per share (Rs.) Stock dividend

2009 12 101.75 4.57 106.32 36.18 93.53 51.19 180.90 (74.58) (18.06) (56.52) 9.40 51.06 0.75 (2.82) (4.30) 25.42 67.32

2010 12 63.12 3.30 66.42 27.76 56.14 100.74 184.64 (118.22) (16.75) (101.47) 10.00 30.40 (1.10) (4.72) (100.00) 15.05 69.31

2011 12 25.70 4.90 30.60 20.60 28.10 24.40 73.10 (52.50) 1.70 (44.20) 58.60 (198.20) 3.50 38.50 (2.05) (49.90) (8.30)

The Grays Leasing Team

Mr. Muhammad Avais Ibrahim Chief Financial Officer Mr. Muhammad Adil Munir Company Secretary

(Rupees in Millions)

Commenced Business on : August 31, 1995 Head Office : 701-A, 7th Floor, City Towers, Main Boulevard Gulberg-II, Lahore. : (042) 35770381-2 : (042) 35770389 : info@grasleasing.com : www.graysleasing.com : Karachi, Islamabad, Sialkot, Faisalabad. : 25 : Lahore & Karachi Stock Exchanges : Riaz Ahmed & Company Chartered Accountants : Lexicon Law Firm

Company Information

Telephone Fax Email Website Offices at Staff Strength Listed at Auditors Legal Advisors

Year Book 2011

131

Invest Capital Investment Bank Limited

Mr. Naveed Amin CEO

Board of Directors Mr. Ahmed Kamran Chairman Mr. Naveed Amin CEO Mr. Basheer A. Chowdry Director Mr. Shaukat Ali Director Mr. Muhammad Qasim Director Mr. Muhammad Asif Director Miss. Aysha Zahid Director Miss. Fiza Zahid Director

History, Background, Principal Activities etc.

Invest Capital Investment Bank Limited was formed in March, 2007. The bank is listed on Karachi, Lahore and Islamabad stock exchanges. Al-Zamin Leasing Corporation and Al-Zamin Leasing Modaraba were merged with the bank in 2009. The bank has various braches in the main cities of the country. The major area of the business of the bank are Investment finance activities, Leasing Operating Leasing and Shariah compliant transactions.

Performance Highlights (2010-2011)

The Invest Capital Investment Bank, being one of financial sector victims, also started facing increasing mismatch of resources due to defaults in repayments by its clients attributed to their stagnating businesses and non availibity of credit lines as commercial banks are reluctant to lend money to NBFC Sector. This caused an extremely difficult situation for the bank which had previously maintained its financial management and prompt payments. In addition, the Country faced multiple shocks of commodity and energy high prices, heavy floods, global financial crises ,etc which adversely affected the growth of our economy. During 2010-11. Zahidjee group took over the management . The new management has taken various steps including injection of fresh equity to keep bank afloat.

132

Year Book 2011

Balance Sheet
30th June Reporting Period (Months) EQUITY Issued,subs.& Paid-up-Capital Reserve & Retained Earning Total Equity LIABILITIES Deferred Liabilities Long Term Loan Certificate of Investment Lease Key Money Total Non-current Liabilities Current Maturity of L.T. Loan S.T. Loan & Running Finance S.T. Certificate of Investment Other Current Liabilities Total Current Liabilities Total Liabilities Total Equity and Liabilities ASSETS Tangible Fixed Assets Net Investment in Lease Finance Long Term Investment Other Long Term Assets Total Non-current Assets Current Portion of Lease Finance Short-term Finance Investments Other Current Assets Cash & Bank Balances Total Current Assets Total Assets SIGNIFICANT RATIOS Net working Capital (Rs.) Capital Ratio (x) Gearing (X) Leverage Ratio (X) Current Ratio (X) Total Assets / Net Worth (X) Total Financing / Net Worth (X) Break-up Value (Rs.) Investment in Lease Finance (%) (528.00) (10.35) 7.20 (10.61) 0.84 (9.66) 7.31 (1.20) 22.65 6.00 340.00 113.00 397.00 856.00 472.00 121.00 20.00 2,099.00 16.00 2,728.00 3,584.00 1.00 159.00 366.00 154.00 680.00 774.00 198.00 445.00 1,839.00 3,256.00 3,936.00 2009 12 2010 12 2011 12 2,848.00 (3,219.00) (371.00) (Rupees in Millions)

Balance Sheet Growth

Rs. in million

Equity Growth
Rs. in million
0 -50 -100 -150 -200 -250 -300 -350 -400

4000 3500 3000 2500 2000 1500 1000 500 0 2009 2010 2011

2009

2010

2011

Investment in Lease
Rs. in million
450 400 350 300 250 200 150 100 50 0

Cost Analysis (2010-11)

Plant & Machinery Vehicles-Private Vehicles-Commer. Equipments Other

Operating Expenses 34.80 Financial expenses 49.54 Prov. For Doubtful Debts 14.13 Prov. For Dimn in value 1.53

Revenue Analysis (2010-11)

Sector Wise Exposure (2010-11)

%
Chemical, Fertilizers & Pharmaceutical Construction Education

7.60

Lease Income Mark up Income Non Interest Income Other Income

47.41 2.15 40.09 10.35

11.90 5.50 31.70 Health Care 3.80 Textile 8.70 Transport & Communication 6.90 Others 23.90
Energy, Fuel, Oil & Gas

The Invest Capital Investment Bank Ltd. Team

Mr. Naveed Amin CEO Mr. Muhammad Asif Executive Director Syed Shahid Owias Company Secretary Mr. Naim Ashraf CFO Mr. Hameed Rabbani Regional Head - North Mr. Ammer Hamza Khawar Regional Head - Central Mr. Abid S. Farooqui Head of Internal Audit

Income Statement
30th June Reporting Period (Months) INCOME Lease income Mark-up income Capital gain on Investment Non Interest Income Other income Total Income EXPENSES Operating Expenses Financial Expenses Prov. for Doubtful Debts Prov. for Dimn in Value of Invest. Total Expenses Profit Before Taxation Taxation Net Profit / Loss APPROPRIATION Dividend Reserve for Bonus Shares Statutory Reserve Other Reserve SIGNIFICANT RATIOS Book value per share (Rs.) Financial Charges / Total Expenses (%) Times interest earned (X) Earning per share (Rs.) Return on equity (%) Return on Assets (%) Debt Equity Ratio (%) Dividend Per Certificate (Rs.) Stock Dividend (%) 229.00 326.00 93.00 10.00 658.00 (585.00) (1.00) (586.00) 2009 12 2010 12 2011 12 (Rupees in Millions) 110.00 5.00 93.00 24.00 232.00

Commenced Business on : 27th March, 2007 Head Office : B-801, 802, Lakson Square Building No: 3, Sarwar Shaheed Road, Karachi : 021-35205110 : 021-35658409 : shahid.owais@icibl.com : www.investcapital.com : Hyderabad, Multan, Karachi, Lahore & Islamabad : 70 : Karachi, Lahore & Islamabad : Avais Hyder Liaquat Nauman Chartered Accountant : Ahmed & Qazai : NIB Bank Limited

Company Information

Tel Fax Email Website Offices at Staff Strength Listed at Auditors Legal Advisors Bankers

Year Book 2011

133

KASB Modaraba
Syed Majeedullah Husaini Chief Executive Officer

Board of Directors Syed Waseem-ul-Haq Haqqie Chairman Syed Majeedullah Husaini CEO Syed Muhammad Rehmanullah Director Mir Mujahid Ali Khan Director

History, Background, Principal Activities etc.

KASB Modaraba is a multipurpose, perpetual and multi dimntional Modaraba floated in October 1990 under the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980 and is managed by KASB Invest (Private) Limited (Formerly KASB Modaraba Management (Private) Limited), a subsidiary of KASB Bank Limited. The main lines of business of the Modaraba are ljarah, Musharaka, Murabaha, Diminishig Musharaka, and Modaraba transactions.

a company in its infancy cannot be accomplished without the acquisition of meaningful resources, be it funds, human expertise or infrastructure. KASB Modaraba has uncompromisingly pursued these prerequisites but at the same time ensured that wastage and extravagance does not creep into our working culture, at all. CREDIT RATING Rating Short Term Medium / Long Term A3 BBB+

Performance Highlights (2010-2011)

During the year ended June 30, 2011; KASB Modaraba adopted a steady approach towards business with stress on quality and safety, and as such the Modaraba recorded a profit of Rs. 40.14 million with an Earning per Certificate of Rs. 1.42 and return on equity of 13.78%. Keeping market conditions in perspective, and the short time the Modaraba has operated; the results are very good and indicate a strong base for future growth. The total income of the Modaraba increased from Rs. 89.73 million in 2010 to Rs. 167.84 million in the year ended June 2011; showing an increase of approximately 1.87 times. This remarkable growth in total income reflects the capacity of the Modaraba to acquire business and create a dependable revenue stream. The growth in total income was made possible by adopting a proactive business policy that spontaneously met market needs for Islamic products. Our resources have been prudently spread over a wide array of Islamic assets which reveal our thrust for innovation and our aspirations to genuinely serve a craving Islamic market. As a result of these efforts we have attained an impressive increase in our Asset portfolio comprising of well known Islamic products like Musharakah finance, Murabaha, Modaraba and Diminishing Musharakah. It is understood that expansion of this size, for

Rating Agency JCR-VIS Credit Rating Agency

134

Year Book 2011

Balance Sheet
30th June Reporting Period (Months) EQUITY Issued,subs.& Paid-up-Capital Reserve & Retained Earning Total Equity LIABILITIES Deferred Liabilities Long Term Loan Certificate of Investment Lease Key Money Total Non-current Liabilities Current Maturity of L.T. Loan S.T. Loan & Running Finance S.T. Certificate of Investment Other Current Liabilities Total Current Liabilities Total Liabilities Total Equity and Liabilities ASSETS Tangible Fixed Assets Net Investment in Lease Finance Long Term Investment Other Long Term Assets Total Non-current Assets Current Portion of Lease Finance Short-term Finance Investments Other Current Assets Cash & Bank Balances Total Current Assets Total Assets SIGNIFICANT RATIOS Net working Capital (Rs.) Capital Ratio (x) Gearing (X) Leverage Ratio (X) Current Ratio (X) Total Assets / Net Worth (X) Total Financing / Net Worth (X) Break-up Value (Rs.) Investment in Lease Finance (%) 142.50 0.61 0.58 1.64 1.86 1.74 0.58 9.14 21.69 96.63 0.30 2.26 3.39 1.15 3.47 2.26 9.72 4.72 167.86 0.28 2.33 3.58 1.27 3.62 2.33 10.88 0.66 7.64 52.96 17.02 63.68 141.30 44.75 122.40 4.26 8.98 128.71 309.10 450.40 73.39 7.03 19.34 91.37 191.13 37.97 641.59 9.81 13.94 59.23 762.53 953.67 66.38 1.54 18.96 225.75 312.62 5.79 653.13 13.38 19.11 109.83 801.24 1,113.87 0.40 25.08 25.48 150.63 15.97 166.60 192.08 450.40 0.42 12.59 13.01 158.94 461.99 44.98 665.9! 678.92 953.67 17.99 149.99 4.87 172.85 61.85 506.04 65.50 633.39 806.23 1,113.87 2009 12 282.74 (24.42) 258.32 2010 12 282.74 (7.99) 274.75 2011 12 282.74 24.90 307.64 (Rupees in Millions)

Balance Sheet Growth

Rs. in million

Equity Growth
Rs. in million

1200 1000 800 600 400 200 0 2009 2010 2011

350 300 250 200 150 100 50 0 2009 2010 2011

Investment in Lease
Rs. in million
700 600 500 400 300 200 100

Cost Analysis (2010-11)

Plant & Machinery Vehicles-Private Vehicles-Commer. Equipments Other

Operating expenses Financial expenses

30.2 69.8

Revenue Analysis (2010-11)

Sector Wise Exposure (2010-11)

%
Chemical, Fertilizers & Pharmaceutical Construction Dairy & Poultry Engineering Energy, Fuel, Oil & Gas Financial Sector Food, Tobacco & Beverages Services Sugar Textile Transport & Communication Others

Lease Income Mark-up Income Non Interest Income Other Income

6.80 8.90 80.30 4.00

0.90 4.20 0.80 1.60 15.70 3.50 11.00 18.30 0.50 24.90 7.30 11.30

Income Statement
30th June Reporting Period (Months) INCOME Lease income Mark-up income Capital gain on Investment Non Interest Income Other income Total Income EXPENSES Operating Expenses Financial Expenses Prov. for Pot. Lease Losses/ Loan Prov. for Dimn. in value of Investment Total Expenses Profit Before Taxation Taxation Net Profit APPROPRIATION Dividend Reserve for Bonus Shares Statutory Reserve Other Reserve SIGNIFICANT RATIOS Book value per share (Rs.) Financial Charges / Total Expenses (%) Times interest earned (X) Earning per share (Rs.) Return on equity (%) Return on Assets (%) Debt Equity Ratio (%) Dividend Per Share (Rs.) Stock Dividend (%) 9.14 27.94 3.28 0.57 4.68 0.57 58.00 9.72 63.11 1.37 0.60 6.41 2.44 226.00 0.28 10.88 69.80 1.45 1.42 13.78 3.88 233.00 0.64 3.20 7.92 8.55 18.09 40.55 19.90 7.03 26.93 16.02 16.02 26.79 45.84 72.63 17.10 17.10 38.56 89.14 40.14 40.14 2009 12 2010 12 2011 12 (Rupees in Millions) 20.51 15.87 11.34 12.85 11.39 14.78 (0.75) 0.80 0.87 9.38 59.52 134.01 0.96 2.15 6.84 42.95 89.73 167.84

The KASB Modaraba Team

Syed M. Husaini Chief Executive Officer Ms. Faiqa Naz Company Secretary & CFO Mr. Fahad Abbas Sr. Manager Product Development Mr. Amir Iqbal Senior Manager Finance Mr. Mohammad Ali Senior Manager Foreign Trade Mr. Imran Ghaffar Senior Manager Recovery Mr. Taswwar H. Siddiqui Senior Manager Marketing

Company Information

127.70

Commenced Business on : October 22,1990 Head Office : 80-C, 13th Commercial Area, Phase-II Extention, D.H.A., Karachi. Telephone : (92-21) 35313939-43 Fax : (92-21) 35313933 Email : info.modaraba@kasb.com Website : www.kasbmodaraba.com Offices at : Karachi Staff Strength : 46 : Karachi & Lahore Listed at Stock Exchanges Auditors : Ernst & Young Ford Rhodes Sidal Hyder Legal Advisors : Ghulam Ali & Company, Ahmed & Qazi

Year Book 2011

135

Modaraba Al-Mali
Mr. Zulfiqar Ali Chief Executive

Board of Directors Mr. Muhammad Hamid Chairman Mr. Zulfiqar Ali CEO Mr. Asad Alim Director Mr. Hassan Aziz Bilgrami Director Mr. Mujtaba Hussain Kazmi Director Mr. Muhammad Imran Director Mr. S. Shah Sajid Hussain Director Mr. Tariq Usman Bhatti Director

History, Background, Principal Activities etc.

Modaraba Al-Mali (MAM), is a multi-purpose Modaraba, managed by Banklslami Modaraba Investment Limited, having its Head office in Karachi and operations in all Major cities of Pakistan through its regional offices. Modaraba AI-Mali was launched in 1987 as one of the pioneering Modarabas and listed in all three stock exchanges of Pakistan. Since then, the Modaraba went through various progressive phases under the umbrella of JS Group, until the management welcomed innovative inductions and carried out Tower Infrastructure Sharing business for the telecom operators under the license of Pakistan Telecommunication Authority in 2005. In the year 2007, the management company was taken over by Banklslami Pakistan Limited which continued their predecessors approach of exploring opportunities in technical services and considering in house expertise of refueling and maintaining Gensets, Aircons, FAS, self supported towers and other equipments, the new management furthermore initiated two new businesses of Fueling Services and Operation & Maintenance Services under the brand name "The Energixers" specially for bank branches, restaurants chains and Telecom towers of wireless carriers. Continuing with devoted focus and progress, the company has emerged as the only established organization in Pakistan who provides country wide supreme quality solution of maintenance and operations services. The Energixers fundamental of business strategy is to ensure maximum customer satisfaction, streamline recommendations and outstretch resources to implement ideas for optimization of operations in a pragmatic manner. Hence MAM offers comprehensive support to our clients by catering their technical and financial needs and provide them the opportunity to devote their resources for optimization of their core business activity by utilizing our sate of the art services. Modaraba

AI-Mali has created a good name in maintenance industry by having a dedicated team of professionals, purpose built & state of the art vehicles with remote monitoring facility and specialization in Maintenance & refueling of Gensets with honesty and reliability. This optimum quality service is currently being provided to Banklslami Pakistan Ltd., Warid Telecom, Auger Pakistan, wi-Tribe Pakistan Limited and TeleCard Limited through our wide spread service network from Karachi to Mansehra operated through our regional offices located in Lahore, Shiekhupura, Faisalabad, Islamabad and Karachi.

Performance Highlights (2010-2011)

The Modaraba incurred loss of Rs. 1.09 per certificate during the current financial year as compared to loss of Rs. 0.70 per certificate during the corresponding year ended June 30, 2010. The Modaraba did well on the operational side as reflected by a 40% increase in the revenue as compared to last year. Maintenance and refueling business expanded tremendously both in terms of number of sites and area of operations. Fuel station project which was stagnant since a long time became operational in the year under review. But these efforts could not be converted to the net results as we have to book heavy impairment losses on an old investment and the towers dismantled last year to save the undue operational costs. These impairments were booked to stop the continuous drainage of profits earned from profitable business operations of the Modaraba. CREDIT RATING Rating Short Term Medium / Long Term

AA2

Rating Agency Pakistan Credit Rating Agency

136

Year Book 2011

Balance Sheet
30th June Reporting Period (Months) EQUITY Issued,subs.& Paid-up-Capital Reserve & Retained Earning Total Equity LIABILITIES Deferred Liabilities Long Term Loan Certificate of Investment Lease Key Money Total Non-current Liabilities Current Maturity of L.T. Loan S.T. Loan & Running Finance S.T. Certificate of Investment Other Current Liabilities Total Current Liabilities Total Liabilities Total Equity and Liabilities ASSETS Tangible Fixed Assets Net Investment in Lease Finance Long Term Investment Other Long Term Assets Total Non-current Assets Current Portion of Lease Finance Short Term Finance Investments Other Current Assets Cash & Bank Balances Total Current Assets Total Assets SIGNIFICANT RATIOS Net working Capital (Rs.) Capital Ratio (x) Gearing (X) Leverage Ratio (X) Current Ratio (X) Total Assets / Net Worth (X) Total Financing / Net Worth (X) Break-up Value (Rs.) Investment in Lease Finance (%) 26.80 0.80 0.06 0.17 1.73 1.24 11.51 4.33 39.08 0.80 0.04 0.20 1.99 1.25 10.81 2.66 41.69 0.84 0.16 2.41 1.19 9.71 3.03 2009 12 2010 12 2011 12 (Rupees in Millions) 184.24 184.24 184.24 27.72 14.81 (5.35) 211.96 199.04 178.89 5.07 9.24 14.31 36.61 36.61 50.92 262.88 124.21 6.18 33.10 35.98 199.47 5.84 25.28 21.80 10.49 63.41 262.88 10.46 10.46 39.35 39.35 49.81 248.85 131.24 6.62 22.27 10.29 170.42 12.50 64.82 1.11 78.43 248.85 6.10 6.10 28.06 28.06 34.16 213.05 132.73 6.47 2.53 141.73 9.75 58.34 3.23 71.32 213.05

Balance Sheet Growth

Rs. in million

Equity Growth
Rs. in million

300 250 200 150 100 50 0 2009 2010 2011

250 200 150 100 50 0

2009

2010

2011

Investment in Lease
Rs. in million 6

Cost Analysis (2010-11)

5 4 3 2 1 0
Plant & Machinery Vehicles-Private Vehicles-Commer. Equipments Other

Operating expenses Provision for pot. Lease losses / loan

94.00 6.00

Revenue Analysis (2010-11)

Sector Wise Exposure (2010-11)

%
Distributor Wholesalers & Retailers 36.00
%
Lease Income Income on maintenance Services Income from operations of fuel station Profit on Investment in Sukuk Cer Profit on Diminishing Musharaka finance Other income

Steel Engineering & Auto Construction Education Miscellaneous Individuals

17.00 1.00 5.00 15.00 14.00

Income Statement
30th June Reporting Period (Months) INCOME Lease Income Income on maintenance Services Profit on investment in sukuk certificate Profit on diminshing musharika finance Profit on morabaha finance Income from operations of fuel station-net Other income Total Income EXPENSES Operating Expenses Financial Expenses Prov. for Pot. lease losses/loan Prov. for Dimn. in value of investment Total Expenses Profit Before Taxation Taxation Net Profit APPROPRIATION Dividend Reserve for Bonus Shares Statutory Reserve Other Reserve SIGNIFICANT RATIOS Book value per share (Rs.) Financial Charges / Total Expenses (%) Times interest earned (X) Earning per share (Rs.) Return on Equity (%) Return on Assets (%) Debt Equity Ratio (%) Dividend Per Share (Rs.) Stock Dividend (%) 29.79 2.25 11.53 60.82 (22.29) (22.29) 11.51 0.05 (0.20) (1.12) (11.00) (0.07) 24.00 71.78 1.14 1.49 74.41 (12.91) (12.91) 10.81 0.02 11.03 (0.70) (6.00) (5.00) 25.00 82.98 0.16 4.84 17.52 105.50 (20.02) (0.14) (20.16) 9.71 15.93 (1.09) (11.00) (9.00) (19.00) 2009 12 2010 12 2011 12 (Rupees in Millions) 21.79 21.25 30.36 26.88 42.82 2.92 2.23 1.03 5.80 7.04 3.15 2.00 0.40 0.04 0.52 6.02 3.70 7.56 38.53 61.50 85.48

36.00 50.00 1.00 1.00 4.00 8.00

Transport & Communication 12.00

The Modaraba Al-Mali Team

Mr. Zulfiqar Ali
Chief Executive

Syed Ahmed Asim Mr. Tahir Zuberi

General Manager

Chief Financial Officer / Company Secretary

Mr. Muhammad Saad

Chief Operating Officer

Commenced Business on : Head Office : 10th Floor, Progressive Square, Shahrah-e-Faisal, Karachi : (92-21) 34547521-5 : (92-21) 34547526 : info@modarabaalmali.com : www.modarabaalmali.com : Karachi, Lahore & Islamabad : 112 : Karachi, Lahore & Islamabad : M. Yousuf Adil Saleem & Co., : Mohsain Tayebaly & Co.,

Company Information

Tel Fax Email Website Offices at Staff Strength Listed at Auditors Legal Advisors

Year Book 2011

137

NBP Leasing Limited

(Formerly NBP Capital Limited)
Mr. Shahzad Enver Murad Managing Director / CEO

Board of Directors Mr. Nausherwan Adil Chairman Mr. Shahzad Enver Murad CEO Mr. Wajahat A. Baqai Director Mr. Rehman Ghani Director Mr. Syed Altaf Hussain Mashadi Director Mr. Muhammad Naeemuddin Director Mr. Syed Azhar Abbas Jaffri Director

History, Background, Principal Activities etc.

NBP Leasing Limited, formerly NBP Capital Limited is a public limited unlisted company, incorporated in1995 and is a wholly owned subsidiary of National Bank of Pakistan. The company is principally engaged in the business of leasing under SECP's Non-Banking Companies Rules. The company holds the vision to build long term relationship with its valued clients by offereing quality services and products with cost effective solutions. NBP Leasing is based in Karachi and its customer base is geographically spread acrosss the country in different sectors like textile, food engineering, construction, technology, service, health care, recreations, chemical, metals, Pharmaceutical etc.

CREDIT RATING Rating Short Term A-1 Medium/Long Term A+ Rating Agency JCR-VIS Credit Rating Co. Ltd

Performance Highlights (2010-2011)

During the year 2010-2011 the company focused in the leasing business and maintained a portfolio of Rs. 584 million diversified in different assets and sectors. The total assets base of the company remained at Rs. 790 million with a capital (equity) base of Rs. 655.98 million. The total income of the company was booked at Rs. 89.51 million. The operating profit was to Rs. 50.59 million and the net profit after provision, impairment (unrealized) and tax was Rs. 52.24 million. The liquidity position of the company was dexterously managed as evident from the current ratio at 5.34. The company has considerable capacity to grow as it is at the lowest level of leverage. The management team has given a vibrancy to the company and adopted a proactive but cautious approach to develop new business under a well defined strategy and prudent risk management guidelines.

138

Year Book 2011

Balance Sheet
30th June Reporting Period (Months) EQUITY Issued, subs. & Paid-up-Capital Reserve & Retained Earning Total Equity LIABILITIES Deferred Liabilities Long Term Loan Certificate of Investment Lease Key Money S.T. Loan & Running Finance S.T. Certificate of Investment Other Current Liabilities Total Current Liabilities Total Liabilities ASSETS Tangible Fixed Assets Net Investment in Lease Finance Long Term Investment Other Long Term Assets Current Portion of Lease Finance Short-term Finance Investments Other Current Assets Cash & Bank Balances Total Current Assets Total Assets SIGNIFICANT RATIOS Net working Capital (Rs.) Current Ratio (X) Total Assets / Net Worth (X) Total Financing / Net Worth (X) Leverage Ratio (X) Break-up Value (Rs.) Capital Ratio (X) Gearing (X) Investment in Lease Finance (%) 410.00 6.09 1.22 0.83 0.12 13.11 0.87 0.03 47.61 383.00 8.21 1.13 0.71 0.09 12.18 0.92 31.96 255.00 5.34 1.20 0.84 0.09 13.12 0.92 60.83 7.00 122.00 180.00 1.00 228.00 119.00 140.00 2.00 490.00 800.00 5.00 66.00 176.00 3.00 106.00 115.00 210.00 4.00 436.00 685.00 10.00 287.00 177.00 2.00 162.00 55.00 93.00 4.00 314.00 790.00 20.00 44.00 81.00 81.00 145.00 23.00 53.00 53.00 76.00 75.00 59.00 59.00 134.00 2009 12 500.00 156.00 656.00 2010 12 500.00 109.00 609.00 2011 12 500.00 156.00 656.00 (Rupees in Millions)

Balance Sheet Growth

Rs. in million
820 800 780 760 740 720 700 680 660 640 620 2009 2010 2011

Equity Growth
Rs. in million
700 600 500 400 300 200 100 0 2009 2010 2011

Investment in Lease
Rs. in million 250 200 150 100 50 0

Cost Analysis (2010-11)

Plant & Machinery Vehicles-Private Vehicles-Commer.

%

Equipments Other

Operating expenses 114.00 Prov. for Pot. Lease Losses/ Loan (2.94) Prov. for Dimn. in value of Investment (11.06)

Revenue Analysis (2010-11)

Sector Wise Exposure (2010-11)

%
Chemical, Fertilizers & Pharmaceutical Financial Sector Energy, Fuel, Oil & Gas

8.00 3.00 3.00 3.00 9.00 21.00 9.00 25.00 19.00

Services Food, Tobacco & Beverages Sugar Textile Transport & Communication Others

Lease Income Mark-up income Other income

32.22 36.67 13.33

Capital gain on Investment 17.78

Income Statement
30th June Reporting Period (Months) INCOME Lease income Mark-up income Capital gain on Investment Non Interest Income Other income Total Income EXPENSES Operating Expenses Financial Expenses Prov. for Pot. Lease Losses/ Loan Prov. for Dimn. in value of Investment Total Expenses Profit Before Taxation Taxation Net Profit APPROPRIATION Dividend Reserve for Bonus Shares Statutory Reserve Other Reserve SIGNIFICANT RATIOS Book value per share (Rs.) Financial Charges / Total Expenses (%) Times interest earned (X) Net profit Margin (%) Earning per share (Rs.) Earning per face value (Rs.) Return on investment (%) Return on Equity (%) Dividend Per Certificate (Rs.) Stock Dividend (%) Debt Equity Ratio (%) Return on Assets (%) Revenue per share (Rs.) Financial Charges / Total Revenue (%) 13.11 21.70 3.10 (4.52) (0.09) (0.87) (0.72) (0.65) 0.07 0.46 1.92 23.01 12.18 0.67 26.26 (119.46) (1.39) (13.88) (14.76) (10.98) 0.04 (9.35) 1.16 1.84 13.12 58.37 1.04 10.45 6.98 8.26 0.12 7.08 1.79 86.94 121.80 93.00 44.00 103.00 86.00 27.54 22.06 33.57 18.50 101.67 (5.76) (1.43) (4.33) 30.00 1.00 106.00 22.00 159.00 (101.00) (32.00) (69.00) 39.00 (1.00) (4.00) 55.00 3.00 2009 12 44.62 40.79 2.07 8.43 95.91 2010 12 18.00 35.00 5.00 58.00 2011 12 29.00 33.00 16.00 11.00 90.00 (Rupees in Millions)

The NBP Leasing Limitd Team

Mr. Shahzad Enver Murad CEO & Managing Director Mr. M. Rizwan Masood Leasing Head Syed Mubashir Ali CFO & Company Secretary Mr. Muhammad Saleem Younus AVP - Internal Audit Mr. Raheel Bhagar Manager Leasing & Credit Mr. Farhan Masroor Manager Recovery & Litigation Mr. Aamir Tariq Khan Manager Treasury Mr. Muhammad Samad Ilyas Manager Client Relationship) Mr. Aijaz Ahmed Siddiqui Incharge - Information Technology Mr. Imdad Husain Incharge - Human Resource & Administration Syed Azfar Hasnain Compliance Officer

Commenced Business on : November 07, 1995

Company Information

52.00

Head Office Telephone Fax Email Website Offices at Staff Strength Listed at Auditors Legal Advisors

: 4th Floor P.R.C. Tower, M.T. Khan Road, Karachi -75400. : 021-99210601-5 : 021-99210600 : info@nbpleasing.com : www.nbpleasing.com : Karachi. : 26 : N/A : Anjum Asim Shahid Rahman : Agha Faisal (Barister at Law)

Year Book 2011

139

ORIX Leasing Pakistan Limited

Mr. Teizoon Kisat CEO

Board of Directors Mr. Kunwar Idris Chairman Mr. Shahid Aziz Siddiqui Nominee Director Mr. Humayun Murad Non Executive Director Mr. Shahid Usman Non Executive Director Mr. Yoshiaki Matsuoka Non Executive Director Mr. Shaheen Amin Non Executive Director Mr. Kazuhito Inoue Non Executive Director Mr. Teizoon Kisat Chief Executive

History, Background, Principal Activities etc.

ORIX Leasing Pakistan Limited (OLP) was incorporated in 1986 and is listed on the Karachi, Lahore and Islamabad stock exchanges. OLP's main business activity is leasing of movable assets. OLP extends lease facility to all segments of the market. However, its main market segment remains small to medium sized companies spread across different manufacturing and service sectors. Its strength lies in an extensive branch network, a diversified portfolio of clients, and a wide range of financial products and business automation. The Company has equity of Rs. 2.24 billion and its assets amount to 21.80 billion. OLP is an associated Company of ORIX Corporation (ORIX), an integrated financial services group based in Japan. With operations in 27 countries and regions worldwide. ORIXs activities include leasing, corporate finance, real estate-related finance and development, life insurance and investment banking. The Group reported pre-tax profit of US$ 1,269 million for the year ended March 31, 2011 and its asset base exceeded US$ 103 billion on that date. OLP has equity investments and board representation in five overseas joint venture leasing companies, and a real estate company in Pakistan. In addition to management support and technical assistance provided by OLP to these associated companies, all overseas operations are headed by executives deputed from OLP. The Company's micro finance division has eight branches. The micro finance division participates in poverty alleviation programs and provides financial assistance at grass root level. Over 18,000 borrowers are presently being served through Micro financing programs.

commercial vehicle accounted for 73% of lease disbursements followed by 26% for machinery and 1% for office equipment. Corporate business credit risk remained diversified, with highest exposure of 16% in the transport and communication sector followed by the services sector at 10%. Revenue from finance leases and instalment loans at Rs. 2.11 billion (2010: Rs. 2.07 billion) was marginally higher than last year. Improved lease rates resulted in higher revenue despite contraction in the lease portfolio to Rs. 17.1 billion from Rs. 18.2 billion last year. Operating lease revenues increased by 4% to Rs. 649 million compared to Rs. 626 million in the previous year. Short-term generator rentals remained the mainstay of the Companys operating lease business. Other operating income at Rs. 189 million (2010: Rs. 395 million) was much lower but the previous year benefitted from exchange gain of Rs. 148 million on sale of the Companys shareholding in SOLC. Income from share of profit from associated companies decreased to Rs. 104 million from Rs. 143 million last year. Share of profit from SOLC was Rs. 42 million lower as a consequence of disinvestment in SOLC. Financial expenses were sharply lower at Rs. 1.80 billion (2010: Rs. 2.06 billion). The 13% reduction was due to lower borrowings which amounted to Rs. 13.0 billion as at June 30, 2011 compared to Rs. 14.8 billion last year. Borrowings were lower by Rs.1.8 billion due to contraction of the lease portfolio and sale proceeds of Rs. 926 million received from disinvestment in SOLC. Strong internal cash generation ensured that the Company met all debt obligations on time. Long term debts of Rs. 4.6 billion were repaid during the year. New funding remained a constraint on expansion of business as banks are reluctant to fund Non Banking Finance Companies. However, the Company was successful in raising new long term debt of Rs. 2.4 billion which included Rs. 1 billion Term Finance Certificate issue. The Company returned to the capital market successfully after a gap of over 3 years. After the year end, the Company succeeded in obtaining significant new funding lines of over Rs. 2 billion and with improvement in the Companys results, the prospects of further increase in funding are good. Austerity measures resulted in 8.5% reduction in administrative and general expenses to Rs. 549 million (2010: Rs. 600 million) despite inflation of approximately 15%. The Rs. 51 million saving resulted from restructuring carried out to improve business efficiencies. During the year, offices of the Company were relocated from rented premises to the Companys own building in Korangi. The Companys Registered Office has also been established in more economical premises at the Islamic Chamber of Commerce Building. Economic slowdown, high inflation, disturbed law and order and power outages all remain a hindrance to stability and growth. The Company will continue to focus on recoveries and improving monitoring standards to minimize exposure in high risk areas. However with improvement in funding position, higher growth and profitability are expected in times ahead. CREDIT RATING Entity Short Term Medium / Long Term

Performance Highlights (2010-2011)

The Company recorded profit before taxes of Rs. 227 million in comparison to Rs. 126 million last year. Current years performance is laudable considering that the previous years profit included extraordinary gains of Rs. 525 million (including exchange gains of Rs. 148 million) arising from sale of 75% of the Companys shareholding in Saudi ORIX Leasing Company (SOLC), an associated company. The Company has disbursed over Rs. 100 billion in its 25 years and has paid dividends from 10% - 45% in 20 of the past 22 years. All segments of the Companys business fared reasonably well in a difficult operating environment. The return to profitable operations is broadly attributed to:
l l l l

Improved margins on new leases. Reduction in finance costs through close monitoring of cash flows and lower borrowings. Savings of Rs. 51 million in Administrative and General expenses despite inflation hovering at close to 15%. Sustained reduction in the non performing portfolio following intensive recovery efforts.

The Company pursued a strategy of caution and tightened its credit policies in view of subdued economic conditions and liquidity constraints. Disbursement at Rs. 8.1 billion were marginally lower than Rs. 8.4 billion in the previous year. Saloon cars and

A1+ AA

140

Year Book 2011

Balance Sheet
30th June Reporting Period (Months) EQUITY Issued,subs.& Paid-up-Capital Reserve & Retained Earning Total Equity LIABILITIES Deferred Liabilities Long Term Loan Certificate of Deposit Lease Key Money Total Non-current Liabilities Current Maturity of L.T. Loan S.T. Loan & Running Finance S.T. Certificate of Deposit Other Current Liabilities Total Current Liabilities Total Liabilities Total Liabilities and Equity ASSETS Tangible Fixed Assets Net Investment in Lease Finance Long Term Investment Other Long Term Assets Total Non-current Assets Current Portion of Lease Finance Short-term Finance Investments Other Current Assets Cash & Bank Balances Total Current Assets Total Assets SIGNIFICANT RATIOS Net working Capital (Rs.) Capital Ratio (X) Gearing (X) Leverage Ratio (X) Current Ratio (X) Total Assets / Net Worth (X) Total Financing / Net Worth (X) Break up Value (Rs.) Investment in Lease Finance (%)

Balance Sheet Growth

2009 12 821.00 1,257.00 2,078.00 217.00 11,966.00 1,026.00 4,598.00 17,807.00 3,270.00 713.00 584.00 2,871.00 7,438.00 25,245.00 27,323.00 1,122.00 9,828.00 1,838.00 677.00 13,465.00 9,307.00 460.00 1,467.00 1,994.00 629.00 13,858.00 27,323.00 6,419.51 0.08 8.45 9.10 1.86 13.15 8.45 26.00 71.45 2010 12 821.00 1,195.00 2,016.00 120.00 7,729.00 1,098.00 4,016.00 4,607.00 623.00 756.00 2,815.00 8,800.00 2011 12 820.53 1,427.17 2,247.70 221.86 5,337.67 1,225.81 4,308.26 4,547.15 1,108.67 737.86 2,067.23 8,460.91
Rs. in million 30000
25000 20000 15000 10000 5000 0 2009 2010 2011

Equity Growth
Rs. in million 2300
2250 2200 2150 2100 2050 2000 1950 1900 2009 2010 2011

(Rupees in Millions)

12,963.00 11,093.60

Investment in Lease
Rs. in million 8000

Cost Analysis (2010-11)

7000 6000 5000 4000 3000

Plant & Machinery Vehicles-Private Vehicles-Commer. Equipments Other

21,763.00 19,554.51 23,779.00 21,802.21 1,075.00 9,130.00 1,426.00 287.00 8,449.00 320.00 1,216.00 1,745.00 131.00 11,861.00 1,266.88 9,109.64 1,483.29 378.45 7,325.45 243.99 358.26 1,393.96 242.28 9,563.94

2000 1000 0

% Operating expenses 31.99 Financial expenses 60.59 Prov. for Pot. Lease Losses/ Loan 7.18 Prov. for Dimn. in value of Investment 0.24

11,918.00 12,238.27

Revenue Analysis (2010-11)

Sector Wise Exposure (2010-11)

24.06 Auto & Allied 0.78 Cement Chemical, Fertilizers & Pharmaceutical 3.96 Construction 3.01 Consumer facilities 0.20 Energy, Fuel, Oil & Gas 6.00 Engineering & Allied 3.52 Financial Sector 0.71 Food, Tobacco & Beverage 4.46 Services 9.73 Sugar 1.64 Textile 8.84 Transport & Communication 15.75 Others 17.34

23,779.00 21,802.21 3,061.10 0.09 7.35 7.89 1.35 11.80 7.35 24.60 76.56 1,103.03 0.11 5.76 6.25 1.13 9.70 5.76 27.40 78.37

%
Lease income 66.13 4.35 Mark-up income Capital gain on Investment 0.48 23.68 Non Interest Income 5.36 Other income

The ORIX Leasing Pakistan Team

Mr.Teizoon Kisat Chief Executive Officer Mr. Ramon Alfrey Chief Financial Officer Ms. Effat Assad Company Secretary Ms. Maryam Aziz Head of Internal Audit Mr. Amjad Iqbal General Manager - Credit Mr. Arshad Abbas General Manager - Commercial Vehicle Division Mr. Mian Faisal Riaz General Manager - Corpoarte Division Mr. Giasuddin Khan General Manager - e-Business Mr. Ayub Khan General Manager - Special Asset Management Mr. M. Shakeb Murad General Manager - Treasury Mr. Irfan Ahmed General Manager & Branch Controller (North Region) Mr. Hamood Ahmed Head - Consumer Auto Lease Ms. Aseya Qasim Head - Micro Finance / Agri Lease Mr. Asim Shafique Head - Operating Lease Mr. Mujahid Ali Mirza Head - Islamic Finance Mr. M. Moizuddin Head - Information Systems Ms. Iffat Hina Head - Human Resources

Income Statement
30th June Reporting Period (Months) INCOME Lease income Mark-up income Capital gain on Investment Non Interest Income Other income Total Income EXPENSES Operating Expenses Financial Expenses Prov. for Pot. Lease Losses/ Loan Prov. for Dimn. in value of Investment Total Expenses Profit Before Taxation Taxation Net Profit APPROPRIATION Dividend Reserve for Bonus Shares Statutory Reserve Other Reserve SIGNIFICANT RATIOS Book value per share (Rs.) Financial Charges / Total Expenses (%) Times interest earned (X) Earning per share (Rs.) Return on Equity (%) Return on Assets (%) Debt Equity Ratio (%) Divided per share (Rs.) Stock Dividend (%)

2009 12

2010 12 2,073.00 143.00 416.00 741.00 384.00 3,757.00 987.00 2,064.00 523.00 57.00 3,631.00 126.00 21.00 105.00 21.00 24.60 56.84 1.06 1.27 5.08 0.5 88.02

2011 12 2,109.52 138.86 15.45 755.42 170.73 3,190.01 948.18 1,795.57 212.81 6.86

(Rupees in Millions) 2,394.00 194.00 25.00 719.00 192.00 3,524.00 1,026.00 2,570.00 324.00 32.00 3,952.00 (429.00) 38.00 (467.00) 26.00 65.02 0.83 (5.85) (20.00) (2.20) 89.42

226.59 81.92 144.67 82.00 29.00 27.40 60.59 1.13 1.76 6.80 0.80 85.22 1.00

Company Information

2,963.42

Commenced Business on : January 1st, 1987 Head Office : ORIX Building Plot No. 16, Sector No. 24, Korangi Industrial Area, Karachi-74900. Registered Office : Islamic Chamber of Commerce Building, Ground Floor, ST-2/A, Block-9, KDA Scheme No. 5, Clifton, Karachi-75600 Telephone : (92-21) 35144028-40 Fax : (92-21) 35144002, 35144020 Email : olp@orixpakistan.com Website : www.orixpakistan.com Offices at : Karachi, Lahore, Islamabad, Faisalabad, Sialkot, Peshawar, Hyderabad, Multan & 20 other cities Staff Strength : 450 Listed at : Karachi, Lahore & Islamabad Stock Exchanges Auditors : KPMG Taseer Hadi & Co Legal Advisors : M/s. Mansoor Ahmed Khan & Co M/s. Walker Martineau & Saleem

Year Book 2011

141

Pak-Gulf Leasing Company Limited

Mr. Sohail Inam Ellahi Chief Executive Officer

Board of Directors Mr. Sohail Inam Ellahi CEO & Chairman Air Marshal (R) Syed Masood Hatif Vice Chairman Mr. Shoaib Salim Malik Director Mr. Pervez Inam Director Mr. Shaheed H. Gaylani Director Mr. Shaikh Aftab Ahmed Director Brigadier (R) Naveed Nasar Khan Director Mr. Rizwan Humayun Director

History, Background, Principal Activities etc.

Pak-Gulf Leasing Company Limited (PGL) was incorporated in 1994 and commenced operations in 1996. PGL's shares are quoted on all the Stock Exchanges of Pakistan. The Company is particularly geared towards catering to the leasing finance needs of midmarket clients. PGL undertakes leasing of all kinds of movable and immovable commercial assets, including plant, machinery, equipment, computers and vehicles, in addition to goods and products ancillary to those assets. PGL's clients are spread over a broad spectrum of lessees, ranging from individuals and sole proprieters to almost all categories of Association of Persons, permitted under the law. PGL has consistently maintained a profitable and progressive business outlook, over the years, by exclusively attending to the leasing finance requirements, primarily of the SME sector in Pakistan.

relying predominantly on internally generated funds for financing its substantially increased business activity, with Long -term Bank Borrowings standing at around Rs 25 million as on 30-06-2011 (Rs. 8.33 million as on 30-06-2011); improving the Company's Break-up Value per Share from Rs. 15.38 as at 30-062010 to Rs. 16.00 as on 30-06-2011; and having yet again obtained an upward revision of PGL's Medium/Long-term Credit Rating by JCR-VIS, from BBB to BBB+.

Performance Highlights (2010-2011)

PGL is uniquely poised, among the rapidly diminishing number of conventional leasing companies in Pakistan, as a beacon of hope and stability, by: writing 81 new leases of Rs. 393 million (the highest ever in a year, in its history) in the Financial Year 2010-11, as compared to Rs. 247 million in the preceding year; touching an all time high Balance Sheet Footing of over Rs 816 million as at 3006-2011: an increase of 16.57% over the position obtaining as at 30-06-2010; attaining a Lease Portfolio of Rs 832 million in FY 2010-11 (Rs. 667 million in FY 20092010), after accounting for leases maturing during the relative financial year;

At Rs. 69.198 million, the Gross Revenue, for the year ended June 30, 2011, stood almost at the same level as for the preceding year (Rs. 69.383 million). Administrative Expenses, however, almost doubled during the year: from Rs. 19.884 million in 2010 to Rs. 31.455 million in 2011, as a result of recognition of certain previously unaccrued expenses relating to salaries. This position did not, however, adversely affect the Pre-tax Profit of the Company for 2011, which showed a marginal increase of 5.04% over 2010. A 67% increase in Taxation (from Rs. 11.023 million in 2010 to Rs. 18.371 million in 2011), led to a decline in the Earnings per Share of PGL to Rs. 0.61 for the year ended 30-062011, as compared to Rs. 0.84 for the year ended 30-06-2010. This reduction in EPS is expected to be mitigated by increased earnings and better tax management in the Financial Year 2011-2012, leading to a much better performance, in terms of PGL's Net of Tax Profit for FY 2011-2012. CREDIT RATING Short-term A-3 Medium / Long-term BBB+ Outlook Stable Rating Agency JCR-VIS Credit Rating Company Limited

142

Year Book 2011

Balance Sheet
30th June Reporting Period (Months) EQUITY Issued, Subs. & Paid-up-Capital Reserve & Retained Earning Total Equity LIABILITIES Deferred Liabilities Long Term Loan Certificate of Investment Lease Key Money Total Non-current Liabilities Current Maturity of L.T. Loan S.T. Loan & Running Finance S.T. Certificate of Investment Other Current Liabilities Total Current Liabilities Total Liabilities Total Equity and Liabilities ASSETS Tangible Fixed Assets Net Investment in Lease Finance Long Term Investment Other Long Term Assets Total Non-current Assets Current Portion of Lease Finance Short-term Finance Investments Other Current Assets Cash & Bank Balances Total Current Assets Total Assets SIGNIFICANT RATIOS Net working Capital (Rs.) Capital Ratio (X) Gearing (X) Leverage Ratio (X) Current Ratio (X) Total Assets / Net Worth (X) Total Financing / Net Worth (X) Break-up Value (Rs.) Investment in Lease Finance (%)

Balance Sheet Growth

2009 12 253.70 127.93 381.63 41.29 25.00 161.47 227.76 46.67 13.51 36.98 97.16 324.92 706.55 82.71 391.01 0.22 473.94 182.28 1.46 25.95 22.92 232.61 706.55 135.44 0.70 0.22 0.42 2.39 1.85 0.10 15.04 81.00 2010 12 253.70 136.57 390.27 49.37 8.33 178.17 235.87 16.67 17.09 40.20 73.96 309.83 700.10 77.53 366.45 2.91 0.21 447.10 215.10 1.53 30.14 6.23 253.00 700.10 179.04 0.55 0.11 0.34 3.42 1.79 0.07 15.38 82.00 2011 12 253.70 152.31 406.01 64.88 25.00 198.58 288.46 33.33 29.23 59.00 121.56 410.02 816.03 73.98 450.68 2.93 0.20 527.79 262.54 1.75 21.71 2.24 288.24 816.03 166.68 0.49 0.22 0.52 2.37 2.01 0.22 16.00 85.39
Rs. in million
900 800 700 600 500 400 300 200 100 0 2009 2010 2011 400 350 300 250 200 150 100 50 0

Equity Growth
Rs. in million

(Rupees in Millions)

2009

2010

2011

Investment in Lease
Rs. in million

Cost Analysis (2010-11)

70 60 50 40 30 20 10 0

Plant & Machinery Vehicles-Private Vehicles-Commer. Equipments Other

Operating expenses 89.35 Financial expenses 15.72 Provision for potential lease losses (5.07)

Revenue Analysis (2010-11)

Sector Wise Exposure (2010-11)

%
Chemical, Fertilizers & Pharmaceutical Construction Electronic Energy, Fuel, Oil & Gas Engineering & Allied Financial Sector Food Tobacco & Beverages Health Care Services Textile Transport & Communication Hotels Others 6.56 11.63 12.42 2.70 10.40 0.75 14.54 13.72 6.92 1.44 1.99 11.23 5.70

% Lease Income 93.18 Non interest income 6.39 Other income 0.43

Income Statement
30th June Reporting Period (Months) INCOME Lease income Mark-up income Capital gain on Investment Non Interest Income Other income Total Income EXPENSES Operating Expenses Financial Expenses Prov. for Pot. Lease Losses/ Loan Prov. for Dimn. in value of Investment Total Expenses Profit Before Taxation Taxation Net Profit APPROPRIATION Dividend Reserve for Bonus Shares Statutory Reserve Other Reserve SIGNIFICANT RATIOS Book value per share (Rs.) Financial Charges / Total Expenses (%) Times interest earned (X) Earning per share (Rs.) Return on equity (%) Return on Assets (%) Debt Equity Ratio (%) Dividend Per Share (Rs.) Stock Dividend (%)

The Pak-Gulf Leasing Company Ltd. Team

Mr. Sohail Inam Ellahi
Chief Executive Chief Manager

Mr. M. Afzalul Haque Ms. Farah Farooq

Internal Auditor

2009 12 53.67 4.84 0.37 0.32 59.20 19.14 9.65 7.38 36.17 23.03 6.97 16.06 2.98 15.04 26.68 4.15 0.69 4.49 2.34 6.55

2010 12 64.16 4.56 0.19 0.47 69.38 19.88 9.72 7.51 37.11 32.27 11.02 21.25 12.68 4.25 15.38 26.19 5.12 0.84 5.44 3.04 10.83 0.50

2011 12 64.47 4.30 0.17 0.26 69.20 31.46 5.63 (1.79) 35.30 33.90 18.37 15.53 2.53 16.00 15.95 6.79 0.61 3.83 1.90 19.36

Mr. Khalil Anwer Hassan Lt. Col. (R) Saleem Ahmed Zafar
Chief Operating Officer

Deputy Chief Operating Officer & Senior Risk Manager

(Rupees in Millions)

Mr. Mian Muhammad Shoaib

Chief Financial Officer / Company Secretary

Major (R) Arif Ullah Lodhi

Manager, H.R. & Administration

Commenced Business on : September 16, 1996 Head Office : 125-127, The Forum, 1st Floor, G-20, Block-9, Clifton, Main Khayaban-e-Jami, Karachi. : (92-21) 35820301, 35820965-6, : (92-21) 35820302, 35375985 : pgl@cyber.net.pk : www.pakgulfleasing.com : Nil : 27 : Karachi, Lahore and Islamabad Stock Exchanges : M/s. KPMG Taseer Hadi & Co., Chartered Accountants : M/s. Mohsin Tayebaly & Company, Karachi

Company Information

Telephone Fax Email Website Offices at Staff Strength Listed at Auditors Legal Advisors

Year Book 2011

143

Saudi Pak Leasing Company Limited

Mr. Ahsanullah Khan Chief Executive Officer

Board of Directors Mr. Muhammad Iqbal Hussain Chairman Mr. Ahsanullah Khan Chief Executive Officer Senator (R) Ihsanul Haq Piracha Director Mr. Muhammad Tariq Masud Director Mr. Farrukh Shauket Ansari Director Mr. Arsalan I. Khan Director Ms. Parveen A. Malik Director Mr. Muhammad Farhan Malik Director

History, Background, Principal Activities etc.

Saudi Pak Leasing Company Limited (SPLC) commenced business in the year 1991 as Standard Chartered Mercantile Leasing Company Limited. It was acquired by Saudi Pak Industrial & Agricultural Investment Company Limited (Saudi Pak), a joint venture of Government of Pakistan and Kingdom of Saudi Arabia in 1997. Saudi Pak holds 35% shares and thus the management of the Company. It was mandated to provide medium term asset financing to all productive sectors of the economy with particular emphasis to serving the needs of small to medium size enterprises and thereby, assist in extending and expanding the credit delivery mechanism.

Company, didnot used up its invesments to such an extent as in the previous year to meet these liabilties and as such generation from investment activities decreased to Rs. 102 million from Rs. 197 million. CREDIT RATING Rating Short Term Medium / Long Term C C

Performance Highlights (2010-2011)

The determined business strategy and relentless efforts of top management team along with the support of our shareholders as well as SaudiPakians have resulted in decreasing our net loss by 65% year-on-year from Rs. 342 million to Rs. 118 million. Our operating loss also decreased by 52% yearon-year from Rs. 156 million to Rs. 75 million. The major impact on net performance was due to recovery from non-performing assets resulting in 46% decrease in provisions yearon-year from Rs.134 million to Rs. 73 million and recording of income and decrease in interest expense by 61% from Rs. 468 million to Rs. 183 million due to repayment/ settlement of borrowed money. The Company made recovery of Rs. 1,247 million from Lease and Loans which is 15% higher as compared to previous year. Adding to excellent performance during the period is the consequent repayment of principal amounting Rs. 1,024 million and financial charges of Rs. 103 million. This was met by cash generation from working capital and operations that increased to Rs. 935 million from Rs. 930 million in the previous year. The

144

Year Book 2011

Balance Sheet
30th June Reporting Period (Months) EQUITY Issued,subs.& Paid-up-Capital Reserve & Retained Earning Accumulated Profit / (Loss) Sub-ordinated debt Surplus/(deficit) on revaluation of Asset-net Total Equity LIABILITIES Deferred Liabilities Long Term Loan Certificate of Investment Lease Key Money Total Non-current Liabilities

Balance Sheet Growth

2009 12 451.61 148.24 (382.71) 333.21 (144.93) 405.42 1,340.70 98.32 876.65 2,315.68 2010 12 451.61 148.25 (723.60) 333.21 25.26 234.73 689.05 54.17 692.93 1,436.15 1,501.48 632.00 459.23 207.93 2,800.64 4,236.79 4,471.52 119.28 1,069.28 14.33 205.97 1,408.86 1,769.29 797.02 199.02 278.79 18.54 3,062.66 4,471.52 262.02 0.05 11.87 15.59 1.09 19.05 12.78 (2.18) 23.91 2011 12 451.61 148.26 (839.41) 333.21 23.66 117.32 580.55 22.60 164.27 767.61 1,346.61 431.12 204.64 295.21 2,277.58 3,045.00 3,162.32 100.68 453.84 12.25 198.51 765.28 1,581.44 391.54 184.14 208.21 31.70 2,397.03 3,162.32
%

Equity Growth
Rs. in million 450
400 350

Rs. in million 7000

6000 5000 4000 3000 2000 1000 0 2009 2010 2011

(Rupees in Millions)

300 250 200 150 100 50 0 2009 2010 2011

Investment in Lease
Rs. in million 2500 2000 1500 1000 500 0

Cost Analysis (2010-11)

Current Maturity of Non-current Liabilities 975.75 S.T. Loan & Running Finance 1,166.99 S.T. Certificate of Investment 850.47 Other Current Liabilities 188.62 Total Current Liabilities Total Liabilities Total Equity and Liabilities ASSETS Fixed Assets Net Investment in Lease Finance Long Term Investment Other Long Term Assets Total Non-current Assets Current Portion of Lease Finance Short-term Finance Investments Other Current Assets Cash & Bank Balances Total Current Assets Total Assets SIGNIFICANT RATIOS Net working Capital (Rs.) Capital Ratio (x) Gearing (X) Leverage Ratio (X) Current Ratio (X) Total Assets / Net Worth (X) Total Financing / Net Worth (X) Break-up Value (Rs.) Investment in Lease Finance (%) 487.46 0.09 5.64 7.94 1.15 14.56 10.00 1.60 31.86 260.80 1,880.88 15.17 76.80 2,233.65 1,920.62 1,072.48 265.11 396.95 14.12 3,669.29 5,902.93 3,181.83 5,497.51 5,902.93

Plant & Machinery Vehicles-Private

%

Vehicles-Commer. Equipments Other

Operating expenses Financial expenses

29.16 47.38

Prov. for Pot. Lease 18.87 Losses / Loan Impairment of available 4.59 for sale securities

Revenue Analysis (2010-11)

Sector Wise Exposure (2010-11)

%

119.46 (0.10) (8.49) (9.72) 1.05 20.85 17.33 (4.78) 59.32

Lease Income Mark-up income Non interest income Other income

66.33 0.93 4.07 28.67

1.65 Cement Chemical, Fertilizer & Pharmaceutical 1.73 Construction 6.4 Consumer Facilities 20.13 Dairy & Poultry 1.32 Electronics 0.48 Energy, Fuel, Oil & Gas 4.09 Engineering & Allied 5.73 Food, Tobacco & Beverages 4.21 Health Care 0.51 Services 3.72 Sugar 0.84 Textile 18.2 Transport & Communication 7.35 Others 23.63

The Saudi Pak Leasing Company Ltd. Team

Mr. Ahsanullah Khan Chief Executive Officer Mr. Nayyar Alam Ilyas Deputy Chief Executive Officer Mr. Rashid Kamal Siddiqui General Manager Mr. Imran Masood Chief Financial Officer & Company Secretary Ms. Farhana Naz
Head of Internal Audit

Income Statement
30th June Reporting Period (Months) INCOME Lease income Mark-up income Capital gain on Investment Non Interest Income Other income Total Income EXPENSES Operating Expenses Financial Expenses Prov. for Pot. Lease Losses / Loan Impairment of available for sale securities Total Expenses Profit Before Taxation Taxation Net Profit APPROPRIATION Dividend Reserve for Bonus Shares Statutory Reserve Other Reserve SIGNIFICANT RATIOS Book value per share (Rs.) Financial Charges / Total Expenses (%) Times interest earned (X) Earning / (Loss) per share (Rs.) Return on equity (%) Return on Assets (%) Debt Equity Ratio (%) Dividend Per Certificate (Rs.) Stock Dividend (%)

2009 12

2010 12

2011 12

Mr. Farooq Khan

Head of Administration, Personnel & Recovery

(Rupees in Millions) 499.35 303.33 145.63 170.30 131.34 2.03 4.29 5.10 2.62 0.99 8.94 0.76 0.22 57.86 677.32 160.09 775.88 100.80 168.88 (527.20) (69.14) (458.06) 1.60 82.90 0.67 (10.14) (2.09) (7.76) 7.94 435.88 124.27 468.01 134.36 128.03 854.67 (419.63) (76.88) (342.75) (2.18) 79.02 0.34 (7.59) (7.33) (7.67) 15.59 219.56 112.41 182.65 72.74 17.71 385.50 (165.94) 48.26 (117.68) (4.78) 61.90 0.59 (2.61) 49.13 (4.81) (8.49)

Mr. Liaqat Mahmood Shah Head of Credit & Marketing Mr. Manzar Masood Head of Compliance

1,205.65

Commenced Business on : July 08, 1991 Head Office : 6th Floor, Lakson Square Building # 1, Sarwar Shaheed Road, Saddar, Karachi-74200. : (021) 35755181-85, 35655215-19 Telephone Fax : (92-021) 35210607-9 Email : info@saudipakleasing.com Website : www.saudipakleasing.com Offices at : Karachi, Lahore, Islamabad, Faisalabad and Sialkot Staff Strength : 47 : Karachi, Lahore & Islamabad Listed at Stock Exchanges Auditors : M/s M.Yousuf Adil Saleem & Co. Chartered Accountants Legal Advisors : M/s. S&B Durrani Law Associates

Company Information

Year Book 2011

145

Security Leasing Corporation Limited

Board of Directors Mr. M.R. Khan Chairman Mr. S.M. Nadim Shafiqullah Vice Chairman Mr. Mohammed Khalid Ali CEO Mr. S.S. Hamid Director Mr. Shafiqur Rahman Director Mr. Naeem Shafi Director Mr. Abdul Ghafoor Director Mr. Ahmad Ali Khan Director

History, Background, Principal Activities etc.

Security Leasing Corporation Limited was incorporated on December 6, 1993 and commenced its operations on May 21, 1995. Security Leasing being an NBFC with leasing as the core business activity and is listed on Karachi and Lahore Stock Exchanges with paid-up capital of Rs.438.03 million. The present equity structure of ordinary shareholders is give below: Merrill Lynch, Pierce, Fenner & Smith Inc. USA Sponsor directors & their associates Genral public 28.33% 45.21% 26.46% 100.00%

Performance Highlights (2010-2011)

The Company earned total revenue of Rs.143.43 million and incurred Loss after tax of Rs.24.78 million. New leases written of Rs. 265.18 million during the year. Since the withdrawal of funding facilities by the Banking sector to NBFCs and especially to leasing companies, the operations suffered substantially. The company is struggling in its attempt to cope with these difficulties and has taken various measures to control the damage. The repricing of mark-up on all of its borrowings to zero percent is one of such measures. The company is current on all its payments to lenders and exploring options to re-establish and revive the business.

146

1ear Book 2011

Balance Sheet
30th June Reporting Period (Months) EQUITY Issued, subs. & Paid-up-Capital Reserve & Retained Earning Total Equity LIABILITIES Deferred Liabilities Long Term Loan Certificate of Investment Lease Key Money Total Non-current liabilities Current Maturity of L.T. Loan S.T. Loan & Running Finance S.T. Certificate of Investment Other Current Liabilities Total Current Liabilities Total Liabilities Total Equity and Liabilities ASSETS Tangible Fixed Assets Net Investment in Lease Finance Long Term Investment Other Long Term Assets Total Non-current Assets Current Portion of Lease Finance Short-term Finance Investments Other Current Assets Cash & Bank Balances Total Current Assets Total Assets SIGNIFICANT RATIOS Net working Capital (Rs.) Capital Ratio (X) Gearing (X) Leverage Ratio (X) Current Ratio (X) Total Assets / Net Worth (X) Total Financing / Net Worth (X) Break-up Value (Rs.) Investment in Lease Finance (%) (12.83) 0.07 12.42 12.42 0.99 16.64 10.44 5.46 69.50 511.58 0.04 30.51 23.23 1.46 34.04 21.66 1.84 68.00 311.48 0.08 8.28 8.86 1.40 13.93 8.28 3.01 68.00 204.68 1,222.34 87.45 549.29 2,063.76 1,537.34 47.35 118.85 195.11 3.75 1,902.40 3,966.17 161.31 494.91 88.19 370.09 1,114.51 1,373.87 12.50 13.95 232.32 2.55 1,635.19 2,749.71 13.84 328.13 397.47 739.45 921.30 22.00 9.11 137.57 7.08 1,097.06 1,836.51 1,157.75 654.86 1,812.61 1,008.02 684.58 110.20 112.43 1,915.23 3,727.83 3,966.17 1,259.79 285.54 1,545.33 965.49 82.41 75.71 1,123.61 2,668.94 2,749.71 686.04 233.06 919.09 710.37 75.21 785.58 1,704.67 1,836.51 2009 12 438.03 (199.70) 238.33 2010 12 438.03 (357.26) 80.77 2011 12 438.03 (306.19) 131.83 (Rupees in Millions)

Balance Sheet Growth

Rs. in million
4500 4000 3500 3000 2500 2000 1500 1000 500 0 2009 2010 2011 0 100 50 200 150

Equity Growth
Rs. in million 300
250

2009

2010

2011

Investment in Lease
Rs. in million
900000 800000 700000 600000 500000 400000 300000 200000 100000 0

Cost Analysis (2010-11)

Plant & Machinery Vehicles-Private Vehicles-Commer.

%

Equipments Other

54.76 29.32 Prov. for Pot. Lease Losses/ Loan 15.52 Prov. for Dimn. in value of investment 0.40
Operating Expenses Financial Expenses

Revenue Analysis (2010-11)

Sector Wise Exposure (2010-11 )

% Auto & Allied 3.28 Cement 2.95 Chemical, Fertilizers & Pharmaceutical 2.90 Construction 6.38 Consumer facilities 3.80 Energy, Fuel, Oil & Gas 11.21 Engineering and Allied 4.50 Food, Tobacco & Beverages 4.13 Health Care 2.14 Sugar 6.93 Textile 18.41 Transport & Communication 14.37 Others 19.00

Lease income Mark-up income Capital gain on Investment Non Interest Income Other income

% 70.33
22.71 (11.99) 18.18 0.77

Income Statement
30th June Reporting Period (Months) INCOME Lease income Mark-up income Capital gain on Investment Non Interest Income Other income Total Income EXPENSES Operating Expenses Financial Expenses Prov. for Pot. Lease Losses/ Loan Prov. for Dimn. in value of investment Total Expenses Profit Before Taxation Taxation Net Profit APPROPRIATION Dividend Reserve for Bonus Shares Statutory Reserve Other Reserve SIGNIFICANT RATIOS Book Value per share (Rs.) Financial Charges / Total Expenses (%) Times interest earned (X) Earning per share (Rs.) Return on Equity (%) Return on Assets (%) Debt Equity Ratio (%) Dividend Per Certificate (Rs.) Stock Dividend (%) 5.46 72.00 0.12 (9.86) (84.00) (9.00) 10.44 1.84 63.00 0.04 (7.55) (171.70) (8.16) 95.59 3.01 29.00 1.25 (0.68) (18.80) (1.08) 89.00 118.87 118.87 118.87 140.72 481.01 44.56 108.63 774.91 (468.11) (110.32) (357.79) 118.48 261.18 37.74 49.67 467.07 (287.29) (13.33) (273.95) 85.57 45.81 24.26 0.63 156.26 (12.83) 11.95 (24.78) 2009 12 367.60 82.11 (151.21) 3.20 5.10 306.80 2010 12 171.32 42.92 (43.07) 5.20 3.42 179.79 2011 12 100.88 32.57 (17.20) 26.07 1.12 143.43 (Rupees in Millions)

The Security Leasing Corporation. Team

Mr. Mohammed Khalid Ali
Chief Executive Officer

Mr. Nauman Akhtar

Head of SAM

Mr. Salman Hameed

Head of Marketing

Chief Financial Officer & Company Secretary

Mr. Tahir Rizwan Mr. Taqi Lakhani

Head of Operations

Regional Head - Lahore

Mr. Shahid Mahmood Shah Mr. Asim Ilyas

Head of Treasury

Commenced Business on : 21-05-1995 Head Office : Block-B, 5th Floor, Lakson Square Building # 3, Sarwar Shaheed Road, Karachi-74200. : 021-111-111-902, 021-35205379 : 021-35689854 : slcl@seclease.com : www.seclease.com : D-802, 8th Floor, City Towers 6-K, Main Boulevard, Gulberg II, Lahore : 39 : Karachi & Lahore Stcok Exchanges (Guaranteee) Limited : Muniff Ziauddin Junaidi & Co. Chartered Accountants : Ali Raza Habb & Co.

Company Information

Tel Fax Email Website Offices at

Staff Strength Listed at Auditors Legal Advisor

Year Book 2011

147

Sigma Leasing Corporation Limited

Mr. Asif Ali Rashid Chairman & CEO

Board of Directors Mr. Asif Ali Rashid Chairman & CEO Mr. Muhammad Nasim Khan Director Mr. Aamir Ali Rashid Director Mr. Shahzad Ali Rashid Director Mr. Iskander Sultan Khawaja Director Mr. Rohail Muhammad Director Mr. S. Arshad A. Kazmi Director Mr. Shujat Ali Baig Director Mr. ArshadUllah Khan Director Mr. Shoaib Jawed Savul Director

History, Background, Principal Activities etc.

M/s. Sigma Leasing Corporation Limited (SLCL) has entered in to the fifteenth year of operation. Incorporated on April 11, 1996 under the companies' ordinance 1984, the company commenced its business on January 27, 1997, listed at the Karachi Stock Exchange. The sponsors of the SLCL are operating their businesses in Pakistan and overseas. In Pakistan they represents more than 39 leading apparel machinery manufacturers of the world by having controlling stakes in AL-Murtaza Machinery Co.(Pvt.) Limited, a leading supplier of Apparel and textile made up Machinery for the last 32 Years and Al-Rashid Microcomputers (Pvt.) Limited Commercial Resellers of Hewlett Packard, Tally Printers, Micro Focus and Microsoft Software. The Board of Directors of the Company comprises of experienced Chartered Accountants, MBAs, Renowned Bankers, Leading Industrialists and prestigious group of seasoned businessmen of international prominence. With this professional management the company strives to Optimize results, develop an efficient and motivated work force with corporate pride and provide customers modern and technology based leasing services. SLCL maintains strict financial disciplines and adheres to professional and moral code not to mention an unmitigated observance of code of corporate governance. SLCL has produced enough resources to effectively finance its leasing operations, which shows the confidence reposed in the management of company and the security of the investments by the valued customers, shareholders, bankers, SECP, SBP, credit rating agency and auditors etc. Sigma Leasing Corporation Limited (SLCL) has made all round success in its performance by strong capitalization and an ability to raise funds through a variety of sources including the capital, money markets, term finances from the banks as also other financial instruments. SLCL's existing product range comprises of finance lease for industrial plant & machinery, power generation, office equipment & automobiles. However, along with providing this facility, SLCL also intends to embark on other services, which include consumer lease finance and micro lease finance. In addition to large and corporate clients the company is mainly focused on small and medium enterprise sector. Complete computerized environment and emphasis on information technology to provide efficient service to the clients has been the hallmark of the company's policy. To keep the system current and compatible to the future requirement, the company is continuously upgrading the system with new technology. Sigma Leasing Corporation Limited is committed to develop a strong industrial base through its lease products and has concentrated on capital-intensive industries and endeavored to cater to needs ranging across a cross section of the economy. However, only sound and credit worthy customers are accommodated. This credit policy will assure the valued investors that their investment is safe in Sigma. SLCL endeavors to facilitate the lessee

by providing cash flow benefits, a sound hedge against inflation, an alternate source of funding, avoidance of dilution of share ownership, time efficiency and above all tax efficiency

Performance Highlights (2010-2011)

The present and continuous uncertain economic conditions since 27th December 2007, stock market's meltdown, liquidity crunch, energy crisis, security problems, declining foreign currency reserve, continuous currency depreciation, inflation, food crisis, below expectation corporate results, slowing down construction activity, textile, auto & fertilizer have further dented the market conditions and above all the largest global financial crisis added fuel to the fire. M/s. Sigma Leasing Corporation Limited being very selective and vigilant while making lending proposals, maintaining high quality of assets and established comprehensive funding strategy have been able to sustain the crises and faced the odds with prudence. We have been maintaining high quality of assets, establishment of comprehensive funding strategy and development of reliable funding straits, a sound capital base and high profitability. The current industry scenario has seen a drastic decline not only in business but in all areas of operations. Considering all hurdles, we have never compromised on the quality of the leases / assets at the approval stage or subsequent monitoring which led us to sustain. Due to lack of good avenues for investments, our balance sheet size has reduced to Rs.511.577 million while lease portfolio has declined to Rs.200.953 million from Rs.531.492 million and Rs.334.493 million respectively. Risk evaluation procedures were enriched and made more stringent to ensure only qualifying cases are approved to keep the credit risk at minimal. By the grace of GOD Almighty the overdue position of SLCL's lease portfolio is again the lowest in the entire leasing sector which is suffering from major defaults and provisions but our cautious approach policy could save us from such major problems.

148

Year Book 2011

Balance Sheet
30th June Reporting Period (Months) EQUITY Issued,subs.& Paid-up-Capital Reserve & Retained Earning (Deficit) Surplus on Revaluation of Property
& Equipment

Balance Sheet Growth

2009 12 2010 12 2011 12
Rs. in million 1400
1200 1000 800 600 400

Equity Growth
Rs. in million 400
350 300 250 200 150 100 50 0 2009 2010 2011

(Rupees in Millions) 300.00 300.00 300.00 6.30 13.33 34.52 55.06 54.94 (1.51) 346.77 42.83 34.41 107.57 131.11 315.92 67.74 37.63 211.40 316.77 632.69 979.46 82.33 278.68 0.94 361.95 361.53 137.33 21.00 97.62 617.49 979.47 300.72 0.35 0.96 1.45 1.95 2.82 1.82 11.56 0.28 368.27 31.07 0.39 39.04 70.51 0.67 0.00 92.02 92.70 163.22 531.49 81.65 119.24 0.59 0.23 201.72 215.25 60.12 5.98 48.42 329.77 531.49 237.06 0.59 0.00 0.33 3.55 1.44 1.24 10.44 62.93 333.01 20.98 57.88 78.86 20.08 20.06 14.23 54.37 133.23 466.24 0.11 108.61 67.61 0.23 176.56 92.35 213.62 5.68 23.37 335.02 511.58 280.65 0.65 0.06 0.40 6.16 1.54 0.60 11.10 39.28

Total Equity LIABILITIES Deferred Liabilities Long Term Loan Certificate of Investment Lease Key Money Total Non-current liabilities Current Maturity of L.T. Loan Current portion of Lease Key Money S.T. Loan & Running Finance S.T. Certificate of Investment Other Current Liabilities Total Current Liabilities Total Liabilities Total Liabilities & Equity ASSETS In-Tangible Fixed Assets Net Investment in Lease Finance Property & Equipment Long Term Investment Other Long Term Assets Total Non-current Assets Current Portion of Lease Finance Short-term Finance Investments Other Current Assets Cash & Bank Balances Total Current Assets Total Assets SIGNIFICANT RATIOS Net working Capital (Rs.) Capital Ratio (X) Gearing (X) Leverage Ratio (X) Current Ratio (X) Total Assets (X) / Net Worth (X) Total Financing / Net Worth (X) Break-up Value (Rs.) Invesment in Lease Finance (%)

200 0 2009 2010 2011

Investment in Lease
Rs. in million 120 100

Cost Analysis (2010-11)

Plant & Machinery

80

Vehicles-Private
60

Vehicles-Commer.
40

Equipments
20

Other
0

Operating expenses 99.08 Financial expenses 0.92

Revenue Analysis (2010-11)

Sector Wise Exposure (2010-11)

%
11.28 Auto & Allied Engineering & Allied 3.32 0.75 Financial Sector Food, Tobacco & Beverages 28.15 Health Care 2.15 Services 1.58 Sugar 0.23 46.27 Textile Transport & Communication 4.26 Others 2.01

Mark-up income Lease Income Other income

7.92 51.67 40.41

The Sigma Leasing Corporation Ltd. Team

Mr. Asif Ali Rashid Chairman & CEO Mr. Arfan Ali Rashid Chief Financial Officer & Company Secretary Mr. Badar Jamil Farooqi Chief Manager Marketing Mr. Muhammad Ahmed Chief Operating Officer Mr. Rashid Bashir Manager Finance & Accounts Mr. Ali Hasan Zaheer Manager Operations

Income Statement
30th June Reporting Period (Months) INCOME Lease income Mark-up income Capital gain on Investment Non Interest Income Other income Total Income EXPENSES Operating Expenses Financial Expenses Prov. for Pot. Lease Losses/ Loan Prov. for Dimn. in value of Investment Total Expenses Profit Before Taxation Un-realized Loss on revaluation of HFT investment Bad Debts Taxation Net Profit APPROPRIATION Dividend @ 5% Reserve for Bonus Shares Statutory Reserve Other Reserve SIGNIFICANT RATIOS Book per share (Rs.) Financial Charges / Total Expenses (%) Times interest earned (X) Earning per share (Rs.) Return on equity (%) Return on Assets (%) Debt Equity Ratio (%) Dividend Per Share (Rs.) Stock Dividend (%) 2009 12 2010 12 2011 12 (Rupees in Millions) 89.28 46.78 25.05 3.02 3.12 3.84 4.56 2.94 25.30 19.58 99.82 75.20 48.48 95.18 64.47 14.59 174.24 (74.41) (6.55) (67.86) 33.00 10.92 12.33 11.56 37.00 (0.93) (2.26) (19.57) (6.93) 52.48 24.33 19.78 4.61 26.96 75.68 (0.48) (7.22) 6.74 63.21 12.28 44.85 1.57 0.22 2.26 0.89 44.32 20.55 0.19 20.74 27.74 2.08 0.06 4.52 21.08 15.00 67.42 1.11 0.91 135.74 0.70 6.52 4.04 6.02 0.50

Commenced Business on : January 27, 1997 Head office : Sigma House 8-C, Block-6, P.E.C.H.S., Off. Shahrah-e-Faisal, Karachi-75400. : (92-21) 34557233-34, 34544850-1 : (92-21) 34544439 : info@sigma-leasing.com : www.Sigma-leasing .com : Karachi : Lahore, Faisalabad & Sialkot : 10 : Karachi stock Exchange : M/s. KPMG Taseer Hadi & Co. Chartered Accountants : Anjum Asim Shahid Reman & Co. : Mohsin Tayebaly & Co

Company Information

Telephones Fax Email Website Office at Liaison Offices Staff Strength Listed at Auditors Internal Auditors Legal Advisors

Year Book 2011

149

SME Leasing Limited

Mrs. Arjumand A. Qazi Chief Executive Officer

Board of Directors Mr. Ihsan ul Haq Khan Chairman Mrs. Arjumand A. Qazi CEO Mr. Mehboob Hussain Director Mr. Zubair F. Tufail Director Mr. Ali. A. Rahim Director Mr. Nasser Durrani Director Mr. Masood Naqi Director

History, Background, Principal Activities etc.

SME Leasing Limited was incorporated in Pakistan on July 12, 2002 as an unlisted public company and acquired the status of a listed company on December 13, 2006. The company is a subsidiary of SME Bank Limited, which holds 73.14% (2009:73.14%) of the share holding of the company. At the time of incorporation, the company was a wholly owned subsidiary of SME Bank Limited, whereby under an arrangement the assets and liabilities of the leasing division of SME Bank Limited were transferred to the company on January 28, 2003. The company is listed on Lahore Stock Exchange and its registered office is situated at 40 Jang Building, A.K. Fazal-ul-Haq Road, Blue Area, Islamabad. The core objective of the company is to extend lease and working capital financing facilities to small and medium enterprises (SMEs) with a vision to enhance their asset base and technology capabilities. The objective of the company is to become the leading institution providing assistance towards the development and empowerment of SMEs in the country. The company has an existing network of eleven (08) branches located in Karachi, Islamabad, Lahore, Sialkot, Peshawar, Hyderabad.

The gross revenue shows decline in comparison to the prior year mainly because of the shrinkage in the financing portfolio. However, the decline in revenue has been duly mitigated by offering substantial reduction in operating expenses; this has reduced the operating loss for the year as compared to the prior year. Despite strong recovery measures causing reduction in suspension of income and decline in non-performing loans. From November 2010 the Company has started booking new leases. Initially the Company will be catering to the needs of its existing clientele having good repayment history and business propositions. Although, the impact of these disbursements is not that significant on current year's financials but it is a step towards revival and the management is optimistic about bringing improvement in next year's results. Further to the above and subsequent to the year-end, the Company has also arranged a long term credit line from a commercial bank that would also assist in the revival process and would be exclusively utilized in generating new business. CREDIT RATING Rating Short Term Medium / Long Term Rating Agency JCR-VIS Credit Rating Co. BBB A-3

Performance Highlights (2010-2011)

The year 2010 has remained under stress due to the economic and financial crises that emerged in the last quarter of 2008. Pakistan's economy remained unstable during the outgoing year due to numerous external and internal factors. Unstable political conditions, unprecedented flood, war on terror, law & order situation, heavy Government borrowing etc. all have held back the economic activity and growth. Availability of funding lines for new business has been the main concern for the NBFC sector, as, since the last few years, banks and other lending institutions have diverted their funding to the risk-free government borrowing rather than to the private sector.

150

Year Book 2011

Balance Sheet
31st December Reporting Period (Months) EQUITY Issued,subs.& Paid-up-Capital Reserve & Retained Earning Total Equity LIABILITIES Deferred Liabilities Long Term Loan Certificate of Investment Lease Key Money Other Long term Liabilities Total Non-current liabilities Current Maturity of L.T. Loan S.T. Loan & Running Finance S.T. Certificate of Investment Lease Key Money Other Current Liabilities Total Current Liabilities Total Liabilities Total Equity and Liabilities ASSETS Tangible Fixed Assets Net Investment in Lease Finance Long Term Investment Other Long Term Assets Total Non-current Assets Current Portion of Lease Finance Current Maturity of L.T. Finance Investment Other Current Assets Cash & Bank Balances Total Current Assets Total Assets SIGNIFICANT RATIOS Net working Capital (Rs.) Capital Ratio (X) Gearing (X) Leverage Ratio (X) Current Ratio (X) Total Assets / Net Worth (X) Total Financing / Net Worth (X) Break-up Value (Rs.) Investment in Lease Finance (%) 2008 12 2009 12 2010 12 (Rupees in Millions) 320.00 320.00 320.00 90.58 31.26 (16.34) 410.58 351.26 303.66 5.92 309.08 580.91 893.77 98.23 67.04 204.77 303.38 673.42 1,569.33 1,979.91 10.02 1,146.98 3.34 61.61 1,221.95 593.11 71.60 4.33 55.57 33.35 757.96 1,979.91 82.39 0.21 0.75 1.65 1.13 4.82 4.49 12.83 0.58 2.41 99.09 428.32 529.82 240.87 116.74 3.22 311.70 37.16 709.69 1,239.51 1,590.77 13.86 907.45 35.34 1.12 957.77 495.33 74.50 36.47 4.25 22.45 633.00 1,590.77 (76.69) 0.22 1.18 1.10 0.89 4.53 4.50 10.98 0.88 3.36 6.66 6.00 280.35 0.70 297.07 92.42 108.03 7.24 152.82 28.40 388.91 685.98 989.64 23.40 432.54 13.29 1.26 470.49 410.49 63.39 28.66 4.73 11.90 519.15 989.64 (130.24) 0.31 0.68 2.26 1.33 3.26 3.13 9.49 0.85

Balance Sheet Growth

Rs. in million 2000
1800 1600 1400 1200 1000 800 600 400 200 0 2009 2010 2011 450 400 350 300 250 200 150 100 50 0

Equity Growth
Rs. in million

2009

2010

2011

Investment in Lease
Rs. in million
900000 800000 700000 600000 500000 400000 300000 200000 100000 0

Cost Analysis (20010-11)

Plant & Machinery Vehicles-Private Vehicles-Commer. Equipments

Operating expenses Financial expenses

33.62 35.21 Provision for pot. Lease losses/loan 31.17

Revenue Analysis (2010-11)

Sector Wise Exposure (2010-11)

%
Auto & Allied 11.61 Chemical, Fertilizers & 2.40 Pharmaceutical 7.33 Construction 1.60 Education 12.78 Energy, Fuel, Oil & Gas 3.91 Engineering & Allied Food, Tobacco & Beverages 6.57 2.82 Health Care Textile 7.90 Transport & Communication 7.71 Others 35.37

Lease income 98.74 Mark-up income 0.45 Capital gain on Investment 0.50 0.29 Dividend Income 0.02 Other income

Income Statement
31st December Reporting Period (Months) INCOME Lease income Mark-up income Capital gain on Investment Dividend Income Other income Total Income EXPENSES Operating Expenses Financial Expenses Prov. for Pot. Lease Losses/ Loan Prov. for Dimn. in value of Investment Total Expenses Profit Before Taxation Taxation Net Profit APPROPRIATION Dividend Reserve for Bonus Shares Statutory Reserve Other Reserve SIGNIFICANT RATIOS Book value per share (Rs.) Financial Charges / Total Expenses (%) Times interest earned (X) Earning per share (Rs.) Return on equity (%) Return on Assets (%) Debt Equity Ratio (%) Dividend Per Share (Rs.) Stock Dividend (%)

The SME Leasing Limited Team

2008 12 149.36 0.49 0.03 5.98 155.85 43.63 101.05 8.90 153.58 2.27 (5.44) 7.71 28.02 20.45 12.83 65.80 12.17 0.24 1.82 0.40 1.78 2009 12 122.43 0.57 0.40 0.11 0.36 123.87 47.63 92.45 49.68 4.67 194.43 (70.56) (0.81) (69.75) 10.98 48.72 0.77 2.18 (0.18) (3.91) 1.30 2010 12 84.51 0.39 0.43 0.25 0.01 85.59 44.71 46.82 41.45 132.98 (47.39) 2.40 (49.79) 9.49 35.21 0.78 (1.56) (0.15) 11.56 0.68 (Rupees in Millions)

Mrs. Arjumand A. Qazi Chief Executive Officer Mr. Tanveer-ul-Bari Chief Financial Officer & Company Secretary

Mr. Shaheen Akhtar Head Credit & Marketing

Commenced Business on : January 28, 2003 Head Office : 2nd Floor, Tower-B, Finance and Trade Centre, Shahra-e-Faisal, Karachi. : (92-21) 99225051-3 : (92-21) 99225054 : info@smelease.com : www.smelease.com : Karachi, Lahore, Islamabad, Hyderabad, Peshawar, Sialkot. : 66 : Lahore Stock Exchange : KPMG Taseer Hadi & Co. : Mohsin Tayyebaly & Co.

Company Information

Telephone Fax Email Website Offices at Staff Strength Listed at Auditors Legal Advisors

Year Book 2011

151

Standard Chartered Leasing Limited

Mr. Arjumand Ahmed Minai Chief Executive

Board of Directors Mr. Mohsin Ali Nathani Chairman Mr. Arjumand Ahmed Minai CEO Mr. Najam I. Chaudhri Director Mr. Najam Siddiqi Director Mr. Shahid Zaki Director Mr. Syed Naseer ul Hasan Director Mr. Tufail J. Ahmad Director

History, Background, Principal Activities etc.

Standard Chartered Leasing Limited was incorporated in Pakistan in October 1993. The Company is a subsidiary of Standared Chartered Bnak (Pakistan) Limited (SCBPL) which has share holding of 86.45%. Standard Chartered Leasing Limited with its head office in Karachi is listed on all three Stock exchanges of the country and operates through a network of four branches, including: Lahore, Islamabad and Faisalabad, along with its registered office in Karachi. The Board of Directors comprises of experienced professionals from the Financial industry. Mr. Mohsin Ali Nathani, the CEO of Standard Chartered Bank (Pakistan) Limted (SCBPL), is the Chairman of the Board.There are two independent directors on the Board.Both independent directors are also member of the Audit and Risk Committee,and the chairman of Audit and Risk Committee is an independent director. SCLL has been in commercial operations since May 1994. It offers two products to the customers; (1) Leasing of Plant and Machinery & Vehicles and (2) Certificate of Investment. The Pakistan Credit Agency (PACRA) has upgraded the long term and short-term ratings of Standard chartered Leasing Limited to AA (Double AA), and A1+ (A one plus) respectively, in December 2011. Arjumand Minai Chief Executive Officer, is a Fellow of the Chartered Association of Certified Accountants, UK and has over 32 years of varied experience with leading national & multinational organizations in manufacturing, marketing and financial services sectors. He has worked for blue chip companies like Exxon and Wellcome Pakistan in the areas of Finance, Audit, Information Technology, Human Resource, Strategic Planning and Corporate Affairs. Prior to his current assignment with SCLL, Arjumand has served the Standard Chartered Group in Pakistan as Managing Director of Standard Chartered Services of Pakistan (Pvt.) Limited, the management company of Standard Chartered Modaraba, and as Head of Islamic Banking & Strategic Projects of SCBPL. Arjumand was Chief Financial Officer of Union Bank from August 2003 to September 2006, when Union Bank

was acquired by the Standard Chartered Group.

Performance Highlights (2010-2011)

The 2011 financials reflect significantly improved performance in the backdrop of a challenging business environment, uncertain political and security situation and the increase in financial stress caused by the floods. Your Company's profit before tax grew from Rs. 65.55 Million last year to Rs. 117.34 Million in 2011, with earnings per share of Rs. 0.78 from Rs. 0.44 in 2010, an increase of around 78%. This clearly demonstrates the sound business fundamentals, dynamic strategy, balance sheet strength, brand image, and above all, our resilience to the headwinds caused by the economic downturn. Net Revenue of the Company grew by 41% from Rs. 133.02 Million in 2010 to Rs. 187.28 Million in 2011. Fresh leases booked during the period amounted to Rs.1,705 Million, compared to Rs 960 Million in 2010. Liquidity of approximately Rs 1.81 Billion was generated through mobilization of cost effective Certificates of Investment (COI). The COI base as at June 30, 2011 was Rs. 1.68 Billion compared to Rs. 1.12 Billion at June 30, 2010. The focus on effective management of rental recovery and collection during the period yielded Rs. 872 Million, achieving recovery / collection level of over 95 % for the entire portfolio. The robust business performance was achieved by focusing on operational efficiency, selective business growth, implementation of prudent risk management policies, effective fund management, cost control and a relentless collection and recovery drive. Final Cash dividend of 5% (PKR 0.5 per share) has been approved by the Sharesholders at the eighteenth Annual General Meeting. CREDIT RATING Rating
Short Term Medium / Long Term A1+ (Single A one plus) AA (Double A)

Rating Agency Pakistan Credit Rating Agency Limited (PACRA)

152

Year Book 2011

Balance Sheet
30th June Reporting Period (Months) EQUITY Issued, subs. & Paid-up-Capital Reserve & Retained Earning Total Equity LIABILITIES Deferred Liabilities Long Term Loan Certificate of Investment Lease Key Money Total Non-current liabilities Current Maturity of L.T. Loan S.T. Loan & Running Finance S.T. Certificate of Investment Other Current Liabilities Total Current Liabilities Total Liabilities Total Equity and Liabilities ASSETS Tangible Fixed Assets Net Investment in Lease Finance Long Term Investment Other Long Term Assets Total Non-current Assets Current Portion of Lease Finance Short-term Finance Investments Other Current Assets Cash & Bank Balances Total Current Assets Total Assets SIGNIFICANT RATIOS Net working Capital (Rs.) Capital Ratio (X) Gearing (X) Leverage Ratio (X) Current Ratio (X) Total Assets / Net Worth (X) Total Financing / Net Worth (X) Book Value / Share (Rs.) Investment in Lease Finance (%)

Balance Sheet Growth

2009 12 978.35 (246.11) 732.24 0.85 102.55 201.33 304.73 101.04 505.68 357.83 964.55 1,269.28 2,001.52 6.73 1,043.79 157.83 83.71 1,292.06 640.90 5.75 57.53 5.29 709.47 2,001.53 (255.08) 0.46 0.96:1 1.16 1.09:1 2.73 1.67 7.48 84.17 2010 12 978.35 (203.50) 774.85 1.73 229.00 230.73 1,017.42 332.22 1,349.64 1,580.37 2,355.22 3.69 1,279.67 208.00 69.82 1,561.18 699.00 1.02 85.47 8.55 794.04 2,355.22 (555.60) 0.40 1.44 1.53 0.74 3.04 1.96 7.92 84.00 2011 12 978.35 (127.23) 851.12 482.31 482.31 4.71 1,684.62 241.12 1,930.45 2,412.76 2,263.88 1.02 1,944.58 205.52 31.44 2,182.56 993.87 19.40 68.05 1,081.32 3,263.88 (849.13) 0.32 1.98 2.10 0.60 3.83 2.72 8.70 90.00
Rs. in million 3500
3000 2500 2000 1500 1000 500 0 2009 2010 2011
920
820 720 620 520 420 320 220 120 20

Equity Growth
Rs. in million

(Rupees in Millions)

2009

2010

2011

Investment in Lease
Rs. in million 1000 900 800 700 600 500 400 300 200 100 0

Cost Analysis (2010-11)

Plant & Machinery Vehicles-Private Vehicles-Commer. Equipments Other

%
Operating expenses Financial expenses Provision for pot. Lease losses / loan
36.00 69.00 (5.00)

Revenue Analysis (2010-11)

Sector Wise Exposure (2010-11)

% 9.41 Autous & Allied Chemical, Fertilizers & Pharmaceuticl 7.99 Construction 1.05 Dairy & Poultry 6.42 Education 0.98 Electronics 2.30 Energy, Fuel, Oil & Gas 3.70 Engineering & Allied 1.00 Food, Tobacco & Beverages 7.25 Services 1.00 Sugar 12.04 Textile 7.08 Transport & Communication 5.01 34.77 Others

Mark-up income Mark-up Income Other income

88.00 11.00 1.00

Income Statement
30th June Reporting Period (Months) INCOME Lease income Mark-up income Capital gain on Investment Non Interest Income Other income Total Income EXPENSES Operating Expenses Financial Expenses Prov. for Pot. Lease Losses/ Loan Prov. for Dimn. in value of Investment Total Expenses Profit Before Taxation Taxation Net Profit APPROPRIATION Dividend Reserve for Bonus Shares Statutory Reserve Other Reserve SIGNIFICANT RATIOS Book value per share (Rs.) Financial Charges / Total Expenses (%) Times interest earned (X) Earning per share (Rs.) Return on equity (%) Return on Assets (%) Debt Equity Ratio (%) Dividend Per Share (Rs.)

The Standard Chartered Leasing Ltd. Team

Mr. Arjumand Ahmed Minai Chief Executive Mr. Rehan Anjum Chief Financial Officer & Company Secretary Mr. Syed Arif Raza Head of CAD / Recovery & Collection Ms. Farhat Ansari Head of Legal, Compliance & HR Mr. Mossa Raza Head of Internal Audit Mr.Muhammad Salman Dogar Regional Manager, North & Central Ms. Rabia Tesneem Head of Credit & Risk Mr. Muhammad Essa Regional Manager - South Mr. Muhammad Asif Manager - I.T.

2009 12 165.42 12.78 1.67 179.87 53.83 91.17 81.62 9.80 236.40 (56.55) 3.42 (59.97) 94.41 (340.52) 7.48 40.23 1.28 (0.84) (8.19) (3.00) 173.34

2010 12 225.13 15.07 1.08 0.27 241.56 70.62 108.55 (3.38) 0.21 176.01 65.55 22.94 42.61 102.93 (306.43) 7.92 62.00 1.57 0.44 5.50 1.81 1.53

2011 12 304.25 37.12 0.26 2.63 344.26 81.69 156.93 (11.73) 0.02 226.91 117.35 (41.07) 76.28 118.18 (245.41) 8.70 69.00 1.67 0.78 8.96 2.34 210.00 0.50

(Rupees in Millions)

Commenced Business on : May 1994 Head Office

Company Information

: Ground Floor, Al Rahim Tower, I.I. Chundrigar Road, Karachi. : (92-21) 32427727 : (92-21) 32438211 : rehan.anjum@sc.com : standardcharteredleasing.com : Karachi, Lahore and Islamabad : 30 : Karachi, Lahore & Islamabad Stock Exchanges : KPMG Taseer Hadi & Co. Chartered Accountants : Mansoor Ahmed Khan & Co.

Telephone Fax Email Website Offices at Staff Strength Listed at Auditors Legal Advisors

Year Book 2011

153

Standard Chartered Modaraba

Mr. Raheel Qamar Ahmad CEO

Board of Directors Mr. Mohsin Ali Nathani Chairman Mr. Raheel Qamar Ahmad CEO Mr. Najam Siddiqi Director Mr. Imran Sarwar Director Mr. Khurram Shahzad Khan Director Mr. Shezad Arif Director

History, Background, Principal Activities etc.

Standard Chartered Modaraba (SCM) was formed under Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980 and the Rules framed there under and is managed by Standard Chartered Services of Pakistan (Private) Limited. The Management Company is a wholly owned subsidiary of Standard Chartered Bank (Pakistan) Limited. The Modaraba is a perpetual modaraba and is primarily engaged in Ijarah of plant & machinery, motor vehicles (both commercial and private) computer equipment. It also offers other Islamic Financial Products such as Diminishing Musharika, Sukuk, etc. The Modaraba may also invest in suitable commercial and industrial ventures.

The growth in the business is mainly driven by enhancement in selective client segments. The asset portfolio has a good mix of multi-nationals, large and medium sized local corporates and selective SME relationships. Standard Chartered Modaraba has a well diversified asset portfolio comprising of Plant & Machinery, motor vehicles and equipments. More over, Modaraba's sector wise exposure is closely monitored and exposure is not beyond 25% in any industrial segment. SCM continues to maintain entity ratings of AA+ (Double A plus) and A1+ (Single A one plus) for long-term and short-term respectively. These ratings are the highest in the entire modaraba and leasing sectors and have been assigned by Pakistan Credit Rating Agency Limited. They indicate low expectation of credit risk and very strong capacity for timely payment of financial commitments.

Performance Highlights (2010-2011)

By the Grace of Allah, considering the challenging business environment, uncertain political and security situation and the increase in financial stress caused by the last year's floods, SCMs performance during the year has been very good. During the year under review, SCMs net profit increased by 8% to Rs.86.61 million as compared to Rs.79.88 million during corresponding period of last year. SCM focused on raisings funds from general public through Certificates of Musharika (CoMs). Thus the balance of CoMs has been increased by 18% to Rs. 1,747 million as at June 30, 2011 as compared to Rs. 1,482 million as at close of last year. Without compromising credit quality, Modaraba's investment in ljarah finance, ljarah assets, Murabaha finance, Diminishing Musharika,Term Deposits and Sukuks have increased by 11.17% to Rs.3,835 million as against Rs.3,450 million last year. Total assets have increased by 15.42% to Rs. 4,161 million as against Rs. 3,605 million last year. SCM is amongst the very few Modarabas whose asset base has exceeded Rs.4 billion as at June 30, 2011.

154

Year Book 2011

Balance Sheet
30th June Reporting Period (Months) EQUITY Issued, subs. & Paid-up-Capital Reserve & Retained Earning Total Equity LIABILITIES Deferred Liabilities Long Term Loan Certificate of Investment Lease Key Money Total Non-current liabilities Current Maturity of L.T. Loan S.T. Loan & Running Finance S.T. Certificate of Investment Other Current Liabilities Total Current Liabilities Total Liabilities Total Equity and Liabilities ASSETS Tangible Fixed Assets Net Investment in Lease Finance Long Term Investment Other Long Term Assets Total Non-current Assets Current Portion of Lease Finance Short-term Finance Investments Other Current Assets Cash & Bank Balances Total Current Assets Total Assets SIGNIFICANT RATIOS Net working Capital (Rs.) Capital Ratio (X) Gearing (X) Leverage Ratio (X) Current Ratio (X) Total Assets / Net Worth (X) Total Financing / Net Worth (X) Break-up Value (Rs.) Investment in Lease Finance (%)

Balance Sheet Growth

2009 12 453.84 469.78 923.62 164.42 296.35 460.77 362.51 1,411.26 279.02 2,052.80 2,513.57 3,437.18 3.65 2,333.47 58.48 18.85 2,414.45 762.90 136.05 81.04 42.74 1,022.75 3,437.18 2010 12 453.84 474.78 928.62 109.85 249.18 359.03 9.47 1,959.04 348.90 2,317.41 2,676.44 3,605.06 3.28 2,230.76 37.89 201.54 2,473.47 675.01 300.00 78.79 77.80 1,131.60 3,605.07 2011 12 453.84 484.23 938.07 27.73 350.61 378.34 456.53 1,997.91 390.26 2,844.70 3,223.04 4,161.11 2.34 3,028.99 8.20 347.53 3,387.06 295.50 70.00 386.17 22.38 774.05 4,161.11
Rs. in million 4500

Equity Growth
Rs. in million 1000

(Rupees in Millions)

4000 3500 3000 2500 2000 1500 1000 500 0 2009 2010 2011

900 800 700 600 500 400 300 200 100 0 2009 2010 2011

Investment in Lease
Rs. in million 1800 1600 1400 1200 1000 800 600 400 200 0
Plant & Machinery Vehicles-Private Vehicles-Commer. Equipments Other

Cost Analysis (2010-11)

Operating expenses Financial expenses Prov. for Pot. Lease Losses/Loan

20.45 70.66 8.89

Revenue Analysis (2010-11)

Sector Wise Exposure (2010-11)

Auto & Allied Cement Chemical, Fertilizers & Pharmaceutical Construction Consumer Facilities Dairy & Poultry Education Electronics Energy, Fuel, Oil & Gas Engineering & Allied Financial Sector Food, Tobacco & Beverages Services Sugar Textile Transport & Commuication Others

% 1.81 2.04
12.07 0.52 0.08 0.31 0.95 0.41 8.70 6.25 0.58 25.22 5.59 10.02 5.47 6.79 13.19

(1,030.06) (1,185.81) (2,070.64) 0.30 0.28 0.25 2.10 2.24 2.65 2.33 2.51 2.94 0.50 0.49 0.27 3.72 3.88 4.44 2.72 2.88 3.44 20.35 20.46 20.67 90.00 81.00 80.00

Lease Income Mark-up Income Other Income

83.90 12.74 3.36

The Standard Chartered Modaraba Team

Mr. Raheel Qamar Ahmad
CEO / Managing Director

Income Statement
30th June Reporting Period (Months) INCOME Lease Income Mark-up-Income Capital gain on Investment Non Interest Income Other Income Total Income EXPENSES Operating Expenses Financial Expenses Prov. for Pot. Lease Losses/Loan Prov. for Dimn. in value of Investment Total Expenses Profit Before Taxation Taxation Net Profit APPROPRIATION Dividend Reserve for Bonus Shares Statutory Reserve Other Reserve SIGNIFICANT RATIOS Book value per share (Rs.) Financial Charges / Total Expenses (%) Times interest earned (X) Earning per share (Rs.) Return on equity (%) Return on Assets (%) Debt Equity Ratio (%) Dividend Per Share (Rs.) Stock Dividend (%)

Mr. Mohammad Ali Sajjad Shah

Head of Compliance, Assurance & Product Management

2009 12 354.82 27.90 13.87 396.59 52.90 237.22 292.69 103.90 103.90 74.88 20.78 20.35 81.00 1.45 2.29 11.25 3.20 210.00 1.65

2010 12 348.61 33.46 25.62 407.69 59.79 243.95 327.81 79.88 79.88 77.15 15.98 20.46 74.00 1.43 1.76 8.60 2.27 224.00 1.70

2011 12 338.88 51.46 13.56 403.90 64.90 224.19 28.20 317.29 86.61 86.61 78.29 17.32 20.67 71.00 1.39 1.91 9.28 2.23 265.00 1.73

Mr. Muhammad Siddique

Head of Credit Risk Control

(Rupees in Millions)

Chief Financial Officer & Company Secretary

Mr. Salwat Ahmed

Mr. Mohammad Arif Daya

Unit Head Client Relationship - North

Mr. Mohammad Asim Javed

Unit Head Client Relationship - South

Commenced Business on : August 1987 Head Office : Standard Chartered Bank (Pakistan) Limited Building, P.O. Box 5556, I.I. Chundrigar Road, Karachi-74000. : (92-21) 32450000, 111-346-266 : (92-21) 32400200, 38140801-803 : contact@scmodaraba.com : www.scmodaraba.com : Lahore & Islamabad : 26 : Karachi & Lahore Stock Exchanges : A.F. Ferguson & Co. Chartered Accountants : M/s. Fazle Ghani Khan & Co. M/s. Mohsin Tayebali & Co. M/s. Orr Dignam & Co. M/s. Sirajul Haque & Co.

Company Information

Telephone Fax Email Website Offices at Staff Strength Listed at Auditors Legal Advisors

Year Book 2011

155

Trust Investment Bank Limited

Mr. Shahid Iqbal CEO

Board of Directors Mr. Asif Kamal Chairman Mr. Shahid Iqbal CEO Mr. Humayun Nabi Jan Director Mr. Khalid Rafiq Director Mr. Sajjeed Aslam Director Mr. Shazib Masud Director Mr. Mumtaz Ahmed Director Mr. Munawar Ali Director

History, Background, Principal Activities etc.

Trust Investment Bank Limited ("the Company") was incorporated in 1992 as a public limited Company under the Companies Ordinance, 1984 and is listed on Lahore, Karachi and Islamabad Stock Exchanges. The registered office of the Company is situated at 23-D/1A, Gulberg III, Lahore. The Company is mainly engaged in the business of investment finance services. It is classified as a Non-Banking Finance Company (NBFC) and is regulated by the Securities and Exchange Commission of Pakistan (SECP).

expenses by 18% and financial cost reduced by 14%. CREDIT RATING Rating
Short Term Medium / Long Term Rating Agency A3 (A Three) BBB (Tripple B Minus) PACRA

Performance Highlights (2010-2011)

The financial results for the year ended June 30, 2011 are as follows: Revenue Operating Expenses Financial Expenses Profit/ (loss) after taxation Earnings/ (loss) per Share 618 150 587 166 2.12

It is worth mentioning that due to negative macro economic condition, the situation is not conducive for overall business and specially for the NBFC's, which also affected on our Bank. The management is pleased to report that during the period under review, Bank declared a profit of Rs.166.363 million translating into an EPS of Rs.2.12 as compared to a loss of Rs.701.808 million translating into LPS of Rs.12.16 in the comparative period last year. Our Bank is able to generate the profit by marinating focus on improving operating efficiencies and reduction of operating as well as financial cost. Our Bank has successfully managed to boost the revenue streams specifically focused on Investment Finance Services due to which the income in this head is increased by 136%. During the period under review the Bank launch new products which include bill discounting against which Bank perceived good response from the market and Bank earned substantial margin therein. The austerity measures taken by the management resulted in reduction in admin & operating

156

Year Book 2011

Balance Sheet
30th June Reporting Period (Months) EQUITY Issued, Subs. & Paid-up-Capital Reserve & Retained Earning Total Equity LIABILITIES Deferred Liabilities Long Term Loans Long Term Certificates of Investment Lease Key Money Total Non-current liabilities Current Maturity of L.T. Loan S.T. Loan & Running Finance S.T. Certificates of Investment Other Current Liabilities Total Current Liabilities Total Liabilities Total Liabilities & Equity ASSETS Tangible Fixed Assets Net Investment In Lease Finance Long-Term Investment Other Long-Term Assets Total Non-current Assets Current Portion of Lease Finance Short Term Finance Investments Other Current Assets Cash & Bank Balances Total Current Assets Total Assets SIGNIFICANT RATIOS Net working capital (Rs.) Capital Ratio (Rs.) Gearing Ratio (X) Leverage Ratio (X) Current Ratio (X) Total Assets / Net worth (X) Total Financing / Net worth (X) Break-up Value (Rs.) Investment in Lease Finance (%) 33.30 0.06 0.90 9.44 1.01 16.57 12.11 6.68 57.72 (544.91) 0.16 6.09 11.06 0.87 13.16 8.78 2.70 48.76 208.99 0.09 5.48 9.18 1.06 10.18 5.49 41.67 110.71 1,268.19 162.98 336.46 2,699.55 329.85 399.88 689.14 158.79 4,277.21 6,475.33 331.61 799.85 444.25 301.91 2,220.14 546.82 359.31 233.27 143.19 3,502.74 5,906.19 232.21 153.70 722.14 569.07 1,677.12 2,088.40 806.39 1.38 778.24 29.11 3,703.52 5,380.64 7.18 1,098.50 232.81 732.83 1,826.48 1,027.29 1,159.36 4,013.13 6,084.45 6,475.33 8.09 1,058.79 103.86 239.07 1,040.89 1,393.00 1,613.75 4,047.64 5,457.45 5,906.20 9.21 891.01 151.86 772.93 1,825.01 732.17 1,276.15 742.50 276.33 3,027.15 4,852.16 5,380.64 2009 12 585.53 (194.65) 390.88 2010 12 2011 12 (Rupees in Millions) 892.03 1,292.68 (843.93) (764.20) 448.75 528.48

Balance Sheet Growth

Rs. in million 7000
6000 5000 4000 3000 2000 1000 0 2009 2010 2011

Equity Growth
Rs. in million 900
800 700 600 500 400 300 200 100 0 2009 2010 2011

Investment in Lease
Rs. in million 2000 1800 1600 1400 1200 1000 800 600 400 200 0

Cost Analysis (2010-11)

Plant & Machinery Vehicles-Private Vehicles-Commer. Equipments Other

% Operating expenses 35.00 Financial expenses 123.29 Prov. For Pot. Lease Losses/Loans (45.70) Prov. For Dimn. in Value of Invest. (12.59)

Revenue Analysis (2010-11)

Sector Wise Exposure (2010-11)

%
Auto & Allied 39.18 Chemical, Fertilizers & Pharmaceutical 0.38 Construction 18.73 Energy, Fuel, Oil & Gas 3.27 Engineering & Allied 0.95 Financial Sector 0.45 Health Care 0.82 Services 10.07 Others 9.59 Sugar 0.85 Textile 6.32 Transport & Communication 9.39

Lease Income Mark up income

% 43.97
48.94

Capital Gain/(Loss) on Investments 0.90 Other income 6.19

Income Statement
30th June Reporting Period (Months) INCOME Lease income Mark-up Income Capital Gain/(Loss) on Investments Non Interest Income Other income Total Income EXPENSES Operating Expenses Financial Expenses Prov. For Pot. Lease Losses/Loans Prov. For Dimn. in Value of Invest. Total Expenses Profit Before Taxation Taxation Net Profit/(Loss) APPROPRIATION Dividend Reserve for Bonus Shares Statutory Reserve Other Reserve SIGNIFICANT RATIOS Book Value per share (Rs.) Financial charges / Total Exp. (%) Times Interest Earned (X) Earning per Share (Rs.) Return on Equity (%) Return on Assets (%) Debt Equity Ratio (%) Dividend Per share (Rs.) Stock Dividend (%)

2009 12 454.88 236.83 (20.40) 23.55 694.86 193.64 875.12 311.71 60.00

2010 12 285.58 148.06 16.42 1.12 23.34 474.52 202.42 685.57 225.27 265.84 1,379.10 (904.57) (202.77) (701.81) 61.00 5.03 77.20 (0.32) (167.17) (11.34)

2011 12 290.01 322.78 5.94 40.85 659.58 166.71 587.19 (217.67) (60.00) 183.34 16.97 166.36 33.27 3.79 0.78 0.84 2.12 34.05 2.95 548.62

(Rupees in Millions)

Mr. Imran Hameed Chief Financial Officer Mr. Syed Iqbal Mehdi Group Head Risk Management Mr. Saqib Iqbal Chughtai Head of Internal Audit Mr. Waqas Ahmad Khawaja Head of Credit Mr. Muhammad Zubair Head of Accounts & Finance

The Trust Investment Bank Ltd. Team

Mr. Mahmood Siddique Mian Head of SAM & Legal Mr. Ali Abbas Head of CAD Mr. Awais Yasin Company Secretary Mr. Muhammad Ali Head of IT

(976.39) (261.16) (715.23) 6.68 81.88 (8.84) (182.98) (11.05)

Company Information

1,671.25

476.24

Commenced Business on Head Office Tel Fax UAN Email Website Offices at Staff Strength Listed at Auditors Legal Advisors

: : : : : : : : : : : :

23rd February 1992 Lahore (92-42) 32404714-18 (92-42) 35783005 (92-42) 111-665-462 info@trustbank.com.pk www.trustbank.com.pk Lahore, Karachi, Islamabad, Peshawar, Multan, Faisalabad, Gujranwala. 96 Karachi, Lahore & Islamabad Stock Exchanges Zahid Jamil & Company Chartered Accountants A member firm of IGAF POLARIS Nawaz Kasuri & Rashdeen Law Chambers

Year Book 2011

157

Trust Modaraba
Mr. Basheer A. Chowdry Chief Executive

Board of Directors Mr. Zafar Iqbal Chairman Mr. Basheer Ahmed Chowdry CEO Mr. Manzoor Hussain Shah Kazmi Director Mr. Shaikh Arshad Farooq Director Mr. Mohammad Imran-ul-Haque Director Mr. Sohail Ansar Director Dr. Namoos Baquar Director

History, Background, Principal Activities etc.

Trust Modaraba commenced operations in the year 1991. The Modaraba had been managed by Trust Management Services (Private) Limited till 20th August 2007. SECP, after noting certain irregularities in Modarabas affairs, removed the Trust Management Services (Private) Limited from the management of Modaraba and appointed an independent Administrator. In September 2008, EOI was invited by SECP for transfer of management rights of the Modaraba to an entity having proven track record and sound financial footings. On the basis of evaluation of the management experience and the overall business proposal presented to the SECP, AlZamin Modaraba Management (Private) Limited was appointed as the Management Company of Modaraba in place of Administrator. The handing/taking over process was completed on 23rd February 2009 and, since then, Al-Zamin Modaraba Management (Private) Limited has been managing the affairs of the Modaraba. It has also injected Rs. 25 million in the Modaraba fund and consequently paid up capital increased to Rs. 298 million. Trust Modaraba is a multipurpose Modaraba engaged in Musharakah, Murabahah and Ijarah financing as its main business. It is listed on all the three stock exchanges of the Country. The new Board of Directors include professional bankers with vast experience of domestic and international banking and investments. The presence of strong professional team ensures that Modarabas business is managed with highest standards of competency, capability and professionalism.

conditions and multifarious socio-political challenges in the country During the year, the business of the Modaraba was broadened by generation of resources through recoveries and employment of funds in secured and profitable avenues. There was a strong growth in the customer base and income stream during the year. Murabahah and Ijarah financing remained the core business activities of Modaraba. Accordingly, Ijarah facilities of Rs.117.9 million and Murabahah facilities of Rs.26.5 million were disbursed during the year. Income from operations amounted to Rs.59.3 million as compared to Rs.47.5 million of the corresponding year. The net profit after management fee stood at Rs.23.4 million compared with the loss of Rs.33.1 million for the previous year. Despite inflationary pressures, administrative expenses were controlled at Rs. 8.9 million. The balance sheet size further grew in the year to the total footings of Rs. 371.1 million.

Performance Highlights (2010-2011)

After a consistent history of making losses over, many years, Trust Modaraba has declared a net profit of Rs 23.4 million for the year ended June 30, 2010, as compared to the loss of Rs.33.1 million of the previous year. This turnaround was achieved despite weak economic

158

Year Book 2011

Balance Sheet
30th June Reporting Period (Months) EQUITY Issued,subs.& Paid-up-Capital Reserve & Retained Earning Total Equity LIABILITIES Deferred Liabilities Long Term Loan Certificate of Investment Lease Key Money Total Non-current Liabilities Current Maturity of L.T. Loan S.T. Loan & Running Finance S.T. Certificate of Investment Other Current Liabilities Total Current Liabilities Total Liabilities Total Equity and Liabilities ASSETS Tangible Fixed Assets Net Investment in Lease Finance Long Term Investment Other Long Term Assets Total Non-Current Assets Current Portion of Lease Finance Short-term Finance Investments Other Current Assets Cash & Bank Balances Total Current Assets Total Assets SIGNIFICANT RATIOS Net working Capital (Rs.) Capital Ratio (x) Gearing (X) Leverage Ratio (X) Current Ratio (X) Total Assets / Net Worth (X) Total Financing / Net Worth (X) Break-up Value (Rs.) Investment in Lease Finance (%) 12.20 1.72 0.75 0.09 0.18 15.86 9.38 40.00 162.44 0.75 0.33 6.88 1.33 76.56 13.24 20.23 0.21 110.34 138.43 28.78 14.34 8.16 189.71 300.05 14.12 149.06 11.36 11.53 186.07 39.10 106.98 7.50 23.17 8.31 185.06 371.13 0.57 6.23 11.52 166.92 185.25 44.08 92.97 2.32 35.82 16.78 191.96 377.21 30.91 30.91 12.12 12.12 43.03 300.06 57.95 57.95 33.60 33.60 91.55 371.13 66.20 66.20 2.99 24.63 27.62 93.82 377.21 2009 12 298.00 (40.97) 257.03 2010 12 298.00 (18.42) 279.58 2011 12 298.00 (14.61) 283.39 (Rupees in Millions)

Balance Sheet Growth

Rs. in million

Equity Growth
Rs. in million

400 350 300 250 200 150 100 50 0 2009 2010 2011

300 250 200 150 100 50 0 2009 2010 2011

Investment in Lease
Rs. in million
250

Cost Analysis (2010-11)

200
Plant & Machinery Vehicles-Private

150

100

Vehicles-Commer. Equipments Other

50

Operating expenses

100.00

Revenue Analysis (2010-11)

Sector Wise Exposure (2010-11)

%
Chemical, Fertilizers & Pharmaceutical Education Energy, Fuel, Oil & Gas Engineering & Allied
11.93 2.78 3.61 4.30

Food, Tobacco & Beverages 27.36 7.56 Services Textile Transport & Communication Cement Financial Sector Others
21.49 1.01 0.48 0.13 19.35

Lease Income Mark-up Income Other Income Capital gain on Investment Other Income

72.72 18.19 0.47 6.93 1.69

Income Statement
30th June Reporting Period (Months) INCOME Lease income Mark-up income Capital gain on Investment Non Interest Income Other income Total Income EXPENSES Operating Expenses Financial Expenses Prov. for Doubtful Debts Prov. for Dimn. in value of Investment Total Expense Profit Before Taxation Taxation Net Profit APPROPRIATION Dividend Reserve for Bonus Shares Statutory Reserve Other Reserve SIGNIFICANT RATIOS Book value per share (Rs.) Financial Charges / Total Expenses (%) Times interest earned (X) Earning per share (Rs.) Return on equity (%) Return on Assets (%) Debt Equity Ratio (%) Dividend Per Certificate (Rs.) Stock Dividend (%) (1.11) (12.87) 9.38 0.79 8.00 6.00 0.95 0.71 0.07 0.06 7.01 38.33 42.23 80.56 (33.08) (33.08) 41.45 (2.99) 0.39 38.85 20.45 2.95 23.40 59.89 2009 12 2010 12 2011 12 (Rupees in Millions) 29.59 38.50 57.22 12.91 11.36 14.72 6.15 0.38 0.57 7.22 4.41 3.29 1.37 47.48 59.30 80.91

The Trust Modaraba Team

Mr. Basheer Ahmed Chowdry Chief Executive Mrs. Hamida Aqeel Chief Operating Officer / Company Secretary Mr. Ijaz Ahmed Khan Chief Financial Officer / Regional Head Mrs. Roomana Nasir Internal Auditor

Commenced Business on : November 12, 1993 Head Office

Company Information

59.89 21.02 21.02

: 104-106, Kassam, BC-9, Block-5, Clifton, Karachi. : (021) 35876651-2 : (021) 35870408 : info@trustmodaraba.com : www.@trustmodaraba.com : Karachi, Lahore & Gujranwala : 19 : Karachi, Lahore & Islamabad Stock Exchanges : M. Yousuf Adil Saleem & Company : M/s. Irfan & Irfan Attorney at law

Telephone Fax Email Website Offices at Staff Strength Listed at Auditors Legal Advisors

Year Book 2011

159

Unicap Modaraba
Mr. Basheer A. Chowdry Chief Executive

Board of Directors Mr. Zafar Iqbal Chairman Mr. Basheer Ahmed Chowdry CEO Mr. Manzoor Hussain Shah Kazmi Director Mr. Shaikh Arshad Farooq Director Mr. Mohammad Imran-ul-Haque Director Mr. Sohail Ansar Director Mrs. Dr. Namoos Baquar Director

History, Background, Principal Activities etc.

Unicap Modaraba (the Modaraba) is a Multipurpose, perpetual Modaraba floated in Pakistan in the year 1991 under the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980 and the rules framed thereunder. Its registered office at 104-106, Kassam Court, BC-9, Block-5, Clifton, Karachi. The Modaraba is listed on the Karachi, Lahore and Islamabad Stock Exchange. The Modaraba was managed, until May 3, 2000, by Chartered Management Services (Pvt) Ltd and thereafter the management was transferred to Al-Zamin Modaraba Management (Pvt) Ltd (the Modaraba Management Company) as the registration of the former was cancelled by the Securities and Exchange Commission of Pakistan in view of the Various irregularities committed by the management. The operations of Modaraba have been reduced to minimal level since the year 2000 and present Modaraba Management Company has no plans to revive the Modaraba and intends to dispose off the management rights of the Modaraba. Further accumulated losses of the Modaraba as at balance sheet date (June, 2010) are Rs.144,498,774 (2009: Rs.143,186,136). Due to aformentioned reasons, the Modaraba is not considered a going concern.

Performance Highlights (2010-2011)

The Modaraba is not operative due to severe poverty of funds.

160

Year Book 2011

Balance Sheet
30th June Reporting Period (Months) EQUITY Issued,subs.& Paid-up-Capital Reserve & Retained Earning Total Equity LIABILITIES Deferred Liabilities Long Term Loan Certificate of Investment Lease Key Money Total Non-current Liabilities Current Maturity of L.T. Loan S.T. Loan & Running Finance S.T. Certificate of Investment Other Current Liabilities Total Current Liabilities Total Liabilities Total Equity and Liabilities ASSETS Tangible Fixed Assets Net Investment in Lease Finance Long Term Investment Other Long Term Assets Total Non-current Assets Current Portion of Lease Finance Short-term Finance Investments Other Current Assets Cash & Bank Balances Total Current Assets Total Assets SIGNIFICANT RATIOS Net working Capital (Rs.) Capital Ratio (x) Gearing (X) Leverage Ratio (X) Current Ratio (X) Total Assets / Net Worth (X) Total Financing / Net Worth (X) Break-up Value (Rs.) Investment in Lease Finance (%) (0.17) (0.05) 0.95 0.00 2.50 0.20 0.13 0.65 0.10 3.58 3.58 2.50 2.50 0.25 0.76 1.02 3.52 2.50 0.22 0.43 3.15 3.15 1.09 1.09 0.34 1.00 0.51 1.85 2.94 3.58 3.33 3.33 0.00 3.33 3.52 3.33 3.33 3.33 (0.17) 2009 12 136.40 (135.76) 0.64 2010 12 136.40 (136.22) 0.18 2011 12 136.40 (136.57) (0.17) (Rupees in Millions)

Balance Sheet Growth

Rs. in million

Equity Growth
Rs. in million 1
1

1 0

0 0 0

0 0

2009

2010

2011

0 2009 2010 2011

0 0

Revenue Analysis (2010-11)

Cost Analysis (2010-11)

Operating Expenses Prov. for Dimn in Value of Invest.

98.63 1.37

%
Other Income

100.00

The Unicap Modaraba Team

Mr. Basheer Ahmed Chowdry
Chief Executive

Income Statement
30th June Reporting Period (Months) INCOME Lease income Mark-up income Capital gain on Investment Non Interest Income Other income Total Income EXPENSES Operating Expenses Financial Expenses Prov. for Doubtful Debts Prov. for Dimn in Value of Invest. Total Expenses Profit Before Taxation Taxation Net Profit / Loss APPROPRIATION Dividend Reserve for Bonus Shares Statutory Reserve Other Reserve SIGNIFICANT RATIOS Book value per share (Rs.) Financial Charges / Total Expenses (%) Times interest earned (X) Earning per share (Rs.) Return on equity (%) Return on Assets (%) Debt Equity Ratio (%) Dividend Per Certificate (Rs.) Stock Dividend (%) (0.03) 8.74 0.37 0.37 (1.31) (1.31) 0.48 0.48 (0.03) (0.45) 0.72 0.01 0.73 (0.36) 2009 12 2010 12 2011 12 0.38 0.38 (Rupees in Millions) 0.22 0.12 0.44 0.14 0.01 0.48 0.45

Mrs. Hamida Aqeel

Company Secretary

Commenced Business on : Head Office : 104-106, Kassam Court, BC-9, Block-5, Clifton, Karachi : 021-35876651-2 : 021-35870408 : info@trustmodaraba.com : : : : : 2 : Karachi, Lahore & Islamabad : Muniff Ziauddin Junaidy & Co. Chartered Accountant : Sheikha & Mufti : NIB Bank Limited

Company Information

Tel Fax Email Website Regional Office Tel Fax Staff Strength Listed at Auditors Legal Advisors Bankers

Year Book 2011

161

Members Directory

NBFI & Modaraba Association of Pakistan

Allied Rental Modaraba Mr. Murtaza Ahmed Ali Chief Executive 21/3, Sector - 22, Korangi Industrial Area, Karachi. PABX : 111-250-250 Tel : 35066901-13 Fax : 35066915-16 Email : rental@aesl.com.pk Website : www.arm.com.pk B.F. Modaraba Mr. Mohammad Omar Amin Bawany Chief Executive 4th Floor, Bank House # 1, Habib Square, M A Jinnah Road, Karachi. PABX : 111-786-878 Tel : 32413240 Fax : 32421010 Email : info@bfmodaraba.com.pk Website : www.bfmodaraba.com.pk B.R.R. Guardian Modaraba Mr. Ayaz Dawood Chief Executive 19th Floor, Saima Trade Tower B I.I. Chundrigar Road, Karachi. PABX : 111-329-663 Tel : 3221874-84 Fax : 32271912 Email : brr@firstdawood.com Website : www.firstdawood.com Capital Asset Leasing Corporation Ltd Mr. Saad Saeed Farouqi Chief Executive 14th Floor, Chapal Plaza, Hasrat Mohani Road, Karachi. PABX : 32431181 Tel : 32431188 Fax : 32465703, 32465718 Email : calcorp@optimus.com.pk Website : www.calcorp.com.pk Crescent Standard Modaraba Mr. Ayaz Dawood Chief Executive 19th Floor, Saima Trade Tower B I.I. Chundrigar Road, Karachi. PABX : 111-329-663 Tel : 2271874-84 Fax : 2271912 Email : brr@firstdawood.com Website : www.firstdawood.com/csm First Al-Noor Modaraba Mr. Jalaluddin Ahmed Chief Executive 96-A, SMCH Society, Karachi. PABX : 34558268 Tel : 34552943 Fax : 34553137 Email : fam@cyber.net.pk First Constellation Modaraba Mr. Muhammad Yousuf Memon Chief Executive 2nd Floor Trade Centre I.I. Chundrigar Road, Karachi PABX : 32634192-94, Tel : 32626959 Fax : 32625963 Email : fcmodcmc@yahoo.com Website : www.modarabas.com.pk/ Constellation First Dawood Investment Bank Ltd. Mr. Abdus Samad Khan Chief Executive 19th Floor, Saima Trade Tower B I.I. Chundrigar Road, Karachi. PABX : 111-329-663 Tel : 32271874-84 Fax : 32271913 Email : fdibe@firstdawood.com Website : www.firstdawood.com

Members Directory

164

Year Book 2011

First Elite Capital Modaraba Mr. Aamir Iftikhar Khan Chief Executive 31/10-A, AbuBakar Block New Garden Town, Lahore. PABX : 042-5913701 Tel : 042-5913702 Fax : 042-5913703 Email : fecm@nexlinx.net.pk First Equity Modaraba Mr. Muhammad Adil Ghaffar Chief Executive B-1004, 10th Floor, Lakson Square Bldg # 3 Sarwar Shaheed Road, Karachi. PABX : 35672815 Tel : 35672818 Fax : 35686116 Email : info@firstequitymodaraba.com.pk Website : www.firstequitymodaraba.com.pk First Fidelity Leasing Modaraba Mr. Wasim-ul-Haq Osmani Chief Executive 90-A, 1 Canal Bank Gulberg II Lahore, PABX : 042-111-912-912 Tel : 042-3240555 Fax : 042-35759155 Email : info@fidelitymodaraba.com First Habib Bank Modaraba Mr. S. Anvaar Rasool Chief Executive 6th Floor Habib Bank Annexe Hasrat Mohani Road, Karachi PABX : 32276836 Tel : 32600424 Fax : 32276840 Email : Syed.rasool@hbl.com Website : www.fhbm.com.pk

First Habib Modaraba Mr. Muhammad Shoaib Ibrahim Managing Director & CEO 5th Floor, HBZ Plaza, I.I. Chundrigar Road, Karachi PABX : 32635949-51 Tel : 32635168-9 Fax : 32627373 Email : fhm@habibmodaraba.com Website : www.habibmodaraba.com First IBL Modaraba Dr. Hasan Shoaib Murad Chairman & CEO 43/1, FCC Gulberg III, Lahore. PABX : 042-35778025-7 Tel : 042-35778025-7 Fax : 042-35778024 Email : info@firstibl.com Website : www.firstibl.com First Imrooz Modaraba Mr. Naveed Riaz Chief Executive 405, 4th Floor, Beaumount Plaza Beaumount Road, Civil Line Quarter, Karachi. PABX : 111-467-669 Tel : 35222326 Fax : 35222668 Email : inquiries@imrooz.com Website : www.firstimrooz.com First National Bank Modaraba Mr. Javaid Sadiq Chief Executive 5th Floor, RHQ-Building, 26-Mclagon Road, Lahore, PABX : 042-9211200 Tel : 042-9211200 Fax : 042-9213247 Email : info@nbpmodaraba.com Website : www.nbpmodaraba.com

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First Pak Modaraba Mr. Akhtar I. Pathan Director Mehersons Estate 1st Floor, Block-1, Talpur Road, Karachi. PABX : 32429632-5 Tel : 32429635 Fax : 32420015 Email : fist.pakmodaraba@hotmail.com First Paramount Modaraba Mr. Abdul Ghaffar Umer Chief Executive Room # 107-108, 1st Floor, PECHS Community Office, Complex Block-2, PECHS, Shahrah-e-Quideen, Karachi. PABX : 34381037-38 Tel : 34381101 Fax : 34534410 Email : fpm@cyber.net.pk First Prudential Modaraba Mr. Asad Iqbal Siddiqui Chairman Mehersons Estate 1st Floor, Block-1, Talpur Road, Karachi. PABX : 2429632 Tel : 2429634 Fax : 2420015 Email : info@firstprudentialmodaraba.com First Punjab Modaraba Mr. Khaqan Hasnain Ibrahim Chief Executive 233-A, New Muslim Town, Lahore. PABX : 042-35865032 Fax : 042-35865037 Email : info@punjabmodaraba.com.pk Website : www.punjabmodaraba.com.pk First UDL Modaraba Mr. A.W. Rahi Managing Director 8th Floor, NIC Building, Abbasi Shaheed Road, Karachi. PABX : 35635501 Fax : 35635505 Email : udlmodaraba@gmail.com Website : www.udlmodaraba.com

First Treet Manufacturing Modaraba Syed Shahid Ali Chief Executive 72/B, Kotlakhpat, Industrial Area, Lahore. PABX : 042-35156567, 35830881 Tel : 042-35215646 Fax : 042-5215647-35836770 Email : info@Packsol.com.pk Website : www.packsol.com.pk First Tri-Star Modaraba Mr. Ahmed Ismail Chairman / Chief Executive F/498, S.I.T.E, P.O. 3683 Karachi-75700. PABX : 32571598 Tel : 32569695 Fax : 32563872 Email : modaraba@tristar.com.pk Grays Leasing Ltd Mr. Muhammad Tahir Butt Chief Executive 701-A, 7th Floor, City Towers, Main Boulevard Gulberg II, Lahore. PABX : 042-35770382-6 Fax : 042-35770389 Email : info@graysleasing.com Website : www.graysleasing.com Invest Capital Investment Bank Ltd Mr. Naveed Amin Khawaja Chief Executive 801-802, 8th Floor, Lakson Square Building No. 3, Sarwar Shaheed Road, Karachi. PABX : 35661957-58 Tel : 35205110 Fax : 35661988 Email : info@investcapital.com

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KASB Modaraba Syed M. Husaini Chief Executive 80-C, 13th Commercial Aria, Phase II, Ext: DHA, Karachi. PABX : 35313940 Tel : 35313941-43 Fax : 35313933 Email : Info.modaraba@kasb.com Website : www.kasbmodaraba.com Modaraba Al-Mali Mr. Zulfiqar Ali Chief Executive 10th Floor, Progressive Square, Opposite Nursery, Shahrah-e-Faisal Karachi. PABX : 34547521-5 Tel : Fax : 34547526 Email : info@modarabaalmali.com Website : www.modarabaalmali.com NBP Leasing Ltd Mr. Shahzad Enver Murad Chief Executive 4th Floor, PRC Tower, 31/A Lalazar Drive, M.T. Khan Road, Karachi. PABX : 99210601 Tel : 99210605 Fax : 99210600 Email : info@nbpleasing.com Website : www.nbleasing.com ORIX Leasing Pakistan Ltd Mr. Teizoon Kisat Chief Executive Plot No. 16, Sector-24, Near Vita Chowrangi, Korangi Idustrial Area, Karachi PABX : UAN 111-24-24-24 Tel : 35144028-40 Fax : 35144002, 35144020 Email : olp@orixpakistan.com Website : www.orixpakistan.com

Pak-Gulf Leasing Company Ltd Mr. Sohail Inam Ellahi Chief Executive Room Room # 125-127, 1st Floor, The Forum, G-20, Block -9, Main Khayaban-e-Jami, Clifton, Karachi. PABX : 35820301 Tel : 35880965-6 Fax : 35820302, 35375985 Email : pgl@cyber.net.pk Website : www.pakgulfleasing.com Saudi Pak Leasing Company Ltd Mr. Ahsanullah Khan Chief Executive 6th Floor, Lakson Square Building No. 1, Sarwar Shaeed Road, Karachi. PABX : 111-888-999 Tel : 35755181-85, 35655215 Fax : 35210607-9 Email : info@saudipakleasing.com Website : www.saudipakleasing.com Security Leasing Corporation Ltd Mohammed Khalid Ali Managing Director / CEO Block B, 5th Floor, Lakson Square Building No. 3, Sarwar Shaheed Road, Karachi. PABX : 111-111-902 Tel : 35205379 Fax : 3568954 Email : mkhalidali@seclease.com slcl@seclease.com Website : www.seclease.com Sigma Leasing Corp Mr. Asif Ali Rashid Chairman & CEO Sigma House, 8-C, Block 6, PECHS Shahrah-e-Faisal, Karachi. PABX : 34557233-4 Tel : 34544850-1 Fax : 34544439 Email : info@sigma-leasing.com Website : www.sigma-leasing.com

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SME Leasing Ltd Mrs. Arjumand A. Qazi Chief Executive 2nd Floor, Tower-B, Finance & Trade Centre, Shahrah-e-Faisal, Karachi. PABX : 99225051 Tel : 99225052-3 Fax : 99225054 Email : info@smelease.com Website : smelease.com Standard Chartered Leasing Ltd Mr. Arjumand Ahmed Minai Chief Executive Ground Floor, Al-Rahim Towers I.I. Chundrigar Road, Karachi. PABX : 32427727 Tel : 32427727 Fax : 32438211 Email : rehan.anjum@standardchartered.com Website : www.standardcharteredleasing.com Standard Chartered Modaraba Mr. Raheel Qamar Ahmad Managing Director & CEO 4th Floor, Standard Chartered Bank Building, I.I. Chundrigar Road, Karachi. PABX : 111-346-266 Tel : 32450000 Fax : 32400200 Email : contact@scmodaraba.com Website : www.scmodaraba.com

Trust Investment Bank Ltd Mr. Shahid Iqbal Chief Executive 23-D/1-A, Gulberg III, Lahore. PABX : 042-32404714 Tel : 042-32404715 Fax : 042-35783005 Email : info@trustbank.com.pk Website : www.trustbank.com.pk Trust Modaraba Mr. Basheer A. Chowdry Chief Executive 104-106, Kassam Court BC-9, Block 5, Clifton, Karachi. PABX : 111-111-303 Tel : 35876651-2 Fax : 35870408 Email : info@trustmodaraba.com Website : www.trustmodaraba.com Unicap Modaraba Mr. Basheer A. Chowdry Chief Executive 104-106, Kassam Court BC-9, Block 5, Clifton, Karachi. PABX : 111-111-303 Tel : 5876651-2 Fax : 35870408 Email : info@trustmodaraba.com

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First Habib Bank Modaraba

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